Sullivan & Cromwell has advised Fiat in its move to take full control of US auto manufacturer Chrysler in a deal worth $4.35bn (£2.63bn).

The Italian carmaker, which is to acquire the remaining 41.46% stake in Chrysler it does not already own from a trust affiliated with the United Auto Workers union, known as veba, will pay $1.75bn for the share.

The remaining $2.6bn will be paid by Chrysler, in the form of an initial $1.9bn payment and a further $700m over three years.

The deal is expected to close before 20 January, allowing Fiat chief executive Sergio Marchionne to pool the two companies' resources to create the world's seventh-largest carmaking group, according to Reuters.

Sullivan fielded a team of six in New York to advise Fiat on the deal. Leading the group was corporate partner Scott Miller, who also works in Palo Alto and has a long term relationship with Fiat, alongside tax partners Andy Solomon and Davis Wang.

Special counsel Rebecca Coccaro also advised on employee benefits.

Skadden Arps Slate Meagher & Flom is meanwhile advising Chysler's independent directors.

The deal team  includes M&A partners Peter Atkins and Eric Cochran in New York.

Fiat first took a stake in Chrysler in June 2009 amid the company's bankruptcy, and became the majority shareholder in July 2011 after increasing its stake to 53.5%.

Marchionne said the new unified ownership structure would allow his company to now fully execute its vision of creating a global automaker.