Detroit, MI (AP) Fiat Chrysler and PSA Peugeot have signed a deal for a 50-50 merger,  creating 4th largest automaker with annual sales of 8.7 million cars.

The companies announced the binding terms for the merger that was announced in October in a joint statement Wednesday. The companies say the new group will be led by PSA’s cost-cutting CEO Carlo Tavares, with Fiat Chrysler’s chairman John Elkann as chairman of the merged company.

The joint statement says the merger would position the new company to “successfully capitalize on the opportunities presented in the new era of sustainable mobility.”