Fiat and Peugeot are preparing to sign the merger understanding next week.

According to sources close to Bloomberg News, Fiat Chrysler Automobiles NV and PSA Group, the owner of the Peugeot brand, aim to sign the official merger agreement next week.

Fiat-Peugeot merger will reveal the world's fourth largest vehicle manufacturer.

Fiat and Peugeot officials, who did not comment on the allegations that the agreement will be signed next week, also said their goal is to sign the agreement before the end of the year.

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