Author: Jack
POSTED ON 06 Jun 2019

FCA Withdraws Its Merger Proposal With Renault

It seemed like things were heading towards a super merger between Fiat Chrysler Automobiles and Renault to become one of the more dominate players in the automotive industry. That was until the French government, which has a 15 percent stake in Renault,  requested the board of directors to postpone a vote on merging the companies until a formal commitment from Nissan stating that they would stay apart of the alliance was confirmed. Nissan’s two representative of the Renault board chose to abstain from voting – which left both FCA and Renault concerned Nissan would bow out of the alliance.

As of now, both Renault and Nissan have been quiet about the postponement, but before the French government had intervene, the merger between FCA and Renault would have resulted in the third biggest automotive manufacture behind Volkswagen and Toyota.

“FCA remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties. However it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.”