The press service of the Italian-American Fiat Chrysler Automobiles has announced that it will be withdrawing its proposal to merge with the French company Renault. Blame the unstable political situation in France.
The press release States that the management of the FCA “remains firmly convinced of the financial justification of the proposal, which was widely appreciated by all the shareholders of the company upon its filing with the Renault brand. Everything in this proposal is made in such a way that the merger was beneficial for all parties. However, it became clear that political conditions in France are at present not favourable to the Union between Fiat Chrysler Automobiles and the 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 “failed to adopt the decision to merge with Italian-American group due to the requests of the representatives of the French state to defer a decision for a while”.
The reasons for this delay are unknown, but in my ad, Renault announced that its Board of Directors continues to consider the possibility of merging. Thus, it seems that this rather sudden rupture is unilateral.
I must say that the above events have led many to “scratch head”, especially after the same Renault were working on a potential merger with Japanese companies Nissan and Mitsubishi. Rumors about the connection with the concern FCA appeared in March of this year. It is believed that this recent merger proposal applies only to FCA and Renault, Nissan and Mitsubishi are not considered, although in its announcement on the issue, the concern of the FCA is grateful to these brands for “constructive participation in all aspects of FCA proposals”.