Fiat Chrysler Automobiles and Peugeot are looking to boost their cash reserves ahead of their planned merger, Reuters reports.

A source close to FCA asserts that the car manufacturer is looking at debt guarantees that the Italian government approved on Monday to support local companies, in a bid to secure some much-needed cash. As FCA operates a number of plants in Italy, it could qualify for the government scheme offering more than €400 billion ($432 billion) worth of liquidity and bank loans to companies hit by the coronavirus pandemic.

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FCA secured a €3.5 billion ($3.78 billion) credit line in late March in addition to existing credit facilities worth €7.7 billion ($8.3 billion). If the car manufacturer is to pursue state aid from Italy, it will need to cut its ordinary dividend worth €1.1 billion ($1.19 billion). The company has announced it will postpone its shareholders’ meeting to late June.

“While the merger process is proceeding, the postponement of the AGM (annual general meeting) will raise markets’ concerns of a potential cancellation of the ordinary dividend,” Intesa Sanpaolo analyst Monica Bosio said.

As for PSA Group, chief executive Carlos Tavares said it had agreed new credit lines worth roughly €3 billion ($3.2 billion) and is currently sitting on undrawn credit facilities worth about €3 billion.

FCA shares have plunged by about 45 per cent since late February while PSA’s stock is down 32 per cent. The merger, first announced late last year, should be finalized within the next 12 months.