Fiat Chrysler Automobiles officially parts ways with Ferrari

Fiat Chrysler Automobiles (FCA) has officially announced the separation of Ferrari from the FCA group, with the split going through on January 3, 2016. FCA sold its remaining 80% stake in Ferrari to shareholders, ending decades of control that it held over the iconic Italian exotic car brand.

FCA shareholders are entitled to receive one common share of Ferrari for every 10 FCA common shares held. Italy's Agnelli family that founded Fiat at the end of the 1800s is Ferrari's new largest shareholder with around a quarter of the company's stake. Piero Ferrari (Enzo Ferrari's only living son), held a 10% stake in the company before the initial public offer and spin-off, and has retained that stake. 

According to the Wall Street Journal, a system of loyalty shares gives extra voting rights to long-term investors. Subsequently, the Agnellis and Piero Ferrari control just under 49% of Ferrari's voting rights and have a shareholders' pact that is said to protect the Italian supercar maker and one of the world's most powerful brand names from any potential hostile takeover bids.

Reports say that FCA is getting around $4 billion from the Ferrari spin-off. FCA will now have to focus on clearing its debt and speeding up product development, while FCA CEO Sergio Marchionne continues to look for a partner to facilitate a merger.