TURIN, Italy -

Coming within days of Chrysler announcing it would completely pay off its U.S. and Canadian government loans, Fiat notified the U.S. Department of Treasury of its intent to secure a larger stake in the Big 3 OEM.

The Italian automaker said late last week it plans to exercise its option to purchase the Treasury’s interest held in Chrysler equal to 6 percent on a fully-diluted basis of Chrysler’s equity.

“The price for such purchase will be based on a determination of the equity value of Chrysler to be agreed upon between Fiat and Treasury within 10 business days from the date of submission of the notice or absent agreement, established by the average of the closest estimated values determined by two of three investment banks appointed by the parties,” Fiat officials explained.

The company went on to note the transaction completion will be subject to the obtaining of requisite regulatory approvals.

Following the consummation of the purchase of the interest held by Treasury and the occurrence of the final performance event expected later this year, Fiat expects to hold 57 percent of the outstanding equity in Chrysler.

Chrysler previously revealed it would pay off its U.S. and Canadian government loans — along with any related fees and expenses — with the proceeds from a notes offering, a new term loan facility and the equity investment from Fiat.

Auto Remarketing reported details about that transaction here.