PARIS (AFP) – French carmaker PSA and US-Italian rival Fiat Chrysler said Wednesday they had agreed on the terms of a merger to create the world's fourth-largest automaker as the industry grapples with the costly and complicated transition to cleaner and more sustainable mobility. ''Fiat Chrysler Automobiles and Peugeot SA (Groupe PSA) have today signed a binding combination agreement providing for a 50/50 merger of their businesses to create the fourth largest global automotive original equipment manufacturer by volume and third largest by revenue,'' the statement said. It added there would be ''no plant closures resulting from the transaction.'' Ranking behind global rivals Volkswagen, Renault-Nissan-Mitsubishi and Toyota, the combined group will have a workforce of more than 400,000, total revenues of close to 170 billion euros ($190 million) and annual unit sales of some 8.7 million vehicles. Its brands will include Fiat, Alfa Romeo, Chrysler, Citroen, Dodge, DS, Jeep, Lancia, Maserati, Opel, Peugeot and Vauxhall. The joint entity will have ''the leadership, resources and scale to be at the forefront of a new era of sustainable mobility,'' PSA and Fiat Chrysler said. The tie-up – which the two sides had originally agreed to at the end of October – will ''deliver approximately 3.7 billion euros in estimated annual synergies'' or cost savings. The merger was expected to be completed in 12-15 months, the statement said. Fiat Chrysler chief John Elkann will be chairman and PSA's Carlos Tavares chief executive. ''Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility,'' Tavares said in a statement. ''Our two companies – both of which are successful examples of family entrepreneurship that has survived from generation to generation – have contributed to defining our industry since its origins more than a century ago,'' Elkann wrote in a letter to staff. The combined group – which has yet to be given a name – would be headquartered in the Netherlands, and continue to be listed on the Paris, Milan and New York stock exchanges.