Renault and Fiat Chrysler Call Off Merger


 
 
12:06 06/07/2019

Fiat Chrysler FCAU  and Renault had been in discussions over a possible merger but now it seems any possible deal is off the table for now.

FIat Chrysler is withdrawing its merger proposal for Renault with the company stating that, 'It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.'

Fiat Chrysler also said that it “remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted.”

According to Bloomberg and Dow Jones reports, the merger had been called off after Renault’s board failed to make a decision on the bid.

Renault’s board stated on Wednesday that board directors “were unable to take a decision due to the request expressed by the representatives of the French State to postpone the vote to a later Council.”

The full press release from Renault reads as follows: Renault S.A.'s Board of Directors met today under the chairmanship of Jean-Dominique Senard, to continue reviewing with interest the proposal received from FCA (Fiat Chrysler Automobiles) for a potential 50/50 merger between Renault S.A. and FCA.

The Board of Directors was unable to take a decision due to the request expressed by the representatives of the French State to postpone the vote to a later Council.

French Finance Minister Bruno Le Maire said to BFM TV on Wednesday, 'We should take our time to make sure that things are done well.'

Had the merger been successful, it would have resulted in the world's third largest car maker.

According to Renault, the French government representatives had requested a postponement. France's government is the biggest shareholder in Renault and has a stake of over 15%.




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