FCA rejects Renault proposal to merge due to “political conditions” in France

FCA rejects Renault proposal to merge due to “political conditions” in France

June 6, 2019 0 By autotimesnews

The press service of the Italian-American concern Fiat Chrysler Automobiles announced that it is withdrawing its proposal to merge with the French company Renault. The unstable political situation in France is to blame.

The press release states that the FCA leadership “remains firmly convinced of the financial justification for this proposal, which has been widely appreciated by all shareholders of the concern since its submission by the Renault brand. Everything in this proposal is designed in such a way that the merger would be beneficial for all parties. However, it became clear that the political conditions in France are currently not conducive to the alliance between Fiat Chrysler Automobiles and Renault. ”

Shortly before the announcement of the concern FCA, the guys from Renault released a brief statement that the Board of Directors of the French automaker “could not decide on a merger with the Italian-American concern because of the request of representatives of the French state to postpone the decision for some time.”

The reasons for this postponement are unknown, but Renault announced in its announcement that its board of directors continues to consider the possibility of a merger. Thus, it seems that this rather sudden gap is one-sided.

It must be said that the above events forced many to “scratch their heads”, especially after the same Renault worked on a potential merger with Japanese companies Nissan and Mitsubishi. Rumors about joining the FCA concern appeared back in March of this year. It is believed that this recent merger proposal concerns only FCA and Renault, Nissan and Mitsubishi are not considered, although in their announcement on this issue, FCA thanks these automakers for “constructive participation in all aspects of the FCA proposal.”