London (CNN Business) Fiat Chrysler and Peugeot owner PSA Group have announced the terms of a $48 billion merger that would create the world's third-largest automaker and help spread the huge cost of developing electric and autonomous vehicles.

Shareholders of each automaker would own 50% of the combined operation, the companies said in a joint statement on Thursday. A binding agreement could be finalized within weeks, the statement said. Fiat Chrysler shareholders also would get a special one time dividend worth €5.5 billion ($6.1 billion) as part of the deal.

The combined company would be based in the Netherlands, which is the current headquarters of Fiat Chrysler, although it will keep a head office for its North American operations near Detroit. John Elkann, the US-born scion of the Italian family that founded Fiat, would be chairman of the combined company, while PSA chief executive Carlos Tavares would be CEO.

Fiat Chrysler FCAU PSA PUGOY General Motors GM Volkswagen VLKAF Toyota TM The combined company would have roughly 410,000 employees and annual revenues of $190 billion.andsold a combined 8.7 million vehicles last year, just ahead of, which sold 8.3 million, and not far behindand, which each sold over 10 million.