(AOF) – Stellantis (+1.37% to 20.67 euros) posted one of the largest increases in the CAC this Thursday after the announcement of a share buyback agreement with an investment company which will carry out its decisions purchasing independently of the group. This agreement concerns the second tranche of its buyback program of a maximum amount of 3 billion euros announced in mid-February: it will begin on May 23, 2024 and end no later than August 30, 2024. The agreement concluded will cover a maximum amount of 1 billion euros.
Stellantis plans to cancel ordinary shares acquired under its share repurchase program except for a portion of up to €0.5 billion which will be used for plan-based compensation stock plans and employee stock purchase plans. This should make it possible to “support the benefits of broadening and strengthening the shareholder culture of our teams, while avoiding the dilution of existing shareholders”.
The manufacturer specifies that the ordinary share repurchase program will be implemented on the basis of the authorization granted by the general meeting of shareholders of April 16, 2024, which may be renewed or extended, up to a maximum of 10 % of the company’s share capital. The purchase price per ordinary share will not exceed an amount equal to 110% of the market price of the shares on the NYSE, Euronext Milan or Euronext Paris, as applicable.
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A French market in good shape
The French automobile market recorded its tenth consecutive month of growth in October 2023 with 152,383 registrations of new passenger vehicles (+22% year-on-year). It increased by 16.49% over the first 10 months of 2023, with 1.44 million registrations, almost as many as in 2022 (1.52 million) but much less than the level of 2019 (2.2 million ). However, the forecast indicators are not good because new orders fell by 13% at the end of September 2023. The slowdown in orders could be explained by inflation, the rise in interest rates, and more prudent management of their cash flow by companies (half of the market). If Stellantis (Peugeot, Citroën, Fiat, Opel, Jeep) remains the leader of the French market, with a market share greater than 28%, the Renault group (Renault, Dacia, Alpine) benefited from good performances in October 2023, with almost 31% additional new registrations over one year. The French group represents 24.6% of the private car market.