Fiat Chrysler and PSA Peugeot have signed a deal for a 50-50 merger, creating the world’s fourth-largest automaker with annual sales of 8.7 million cars. The companies announced in a joint statement on Wednesday the binding terms for the merger that was first unveiled in October. The new group will be led by PSA’s cost-cutting CEO Carlos Tavares. Fiat Chrysler’s chairman, John Elkann, will head the board. The merger aims to help the companies achieve scale and save money as they focus on developing expensive new technologies such as electric cars and meet tougher environmental standards. No name for the company has been decided yet.