Fleet News

Fiat withdraws Renault merger offer

Fiat withdraws Renault merger offer

Fiat Chrysler Automobiles (FCA) has withdrawn its proposal to merge with Renault after the French carmaker’s board failed to reach a decision.

It said it had been unable to reach agreement earlier this week, because French government representatives had requested a postponement.

The French government is the biggest shareholder in Renault, with a stake of more than 15%. Nissan also owns 15% of Renault, while Renault owns 43.4% of Nissan's shares.

FCA had proposed the merger with Renault, which would save €5 billion (£4.4bn) a year by sharing development costs on technology such as electric vehicles and self-driving cars, just over a week ago.

The combined business would have been 50% owned by Fiat shareholders and 50% by Renault. Combined vehicle sales would have been 8.7 million units.

FCA said it had become clear that “the political conditions in France do not currently exist for such a combination to proceed successfully”.

However, it said that it remained “firmly convinced of the compelling, transformational rationale” of the proposed merger.

Renault's share price fell by nearly 7% in response to FCA’s decision.



Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Comment as guest


Login  /  Register

Comments

No comments have been made yet.