Fiat shares jump more than 15% after Chrysler deal

Fiat shares have jumped more than 15 percent following the announcement of its plan to buy the remaining 41% of Chrysler it does not own.

The Italian car maker has owned a majority stake in Chrysler since 2009.

The new agreement ends long negotiations with the current owners, Veba, the healthcare trust affiliated to the United Auto Workers’ union (UAW).

The move will create the world’s seventh-largest car company.

Chrysler and Fiat will pay the trust an initial $3.65 billion.

Once the deal is signed off, Chrysler will pay Fiat another $700 million.