FCA group refused to merge with RenaultJune 6, 2019
Group management unexpectedly withdrew its proposal
Last night, the board of directors of the Fiat Chrysler Automobiles Group decided to immediately withdraw its proposal to merge with Groupe Renault. In an official statement, the leadership of the FCA talks about the unfavorable political situation in France, while Western publications believe that Renault shareholders could not agree with Nissan.
The FCA leadership is still confident of the soundness and rationality of the proposal, as well as the balance of terms and conditions that took into account the interests of both parties. The company thanks Groupe Renault and alliance partners – Nissan and Mitsubishi – for constructive participation in the negotiations, but believes that the political situation in France is not conducive to the completion of the transaction. In this regard, FCA intends to take the “implementation of an independent strategy.”
Sources The Wall Street Journal argue that the leadership of Nissan announced a revision of relations with Renault in case the merger deal with FCA is approved. The French government, in turn, refused to support the deal because of the danger of the Alliance’s collapse with Nissan.
At the end of May, the Renault group issued a press release in which it confirmed the receipt of a merger proposal from FCA on the condition of holding equal shares. The Italian concern believed that the merger with Renault would “strengthen the position of brands during the period of large-scale industry transformation,” and also make it possible to reach all segments of the market, from mass to premium.
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