6 Jun 19

FCA offer to Renault is off the table due to French demands

FCA is reportedly withdrawing its merger offer to Renault Group, blaming the French state, owner of a 15 percent stake in Renault, for standing in the way of the deal going forward. "It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully," Fiat Chrysler said in a statement.

The French government had pushed for more control over the merged company, according to people familiar with the situation, while Fiat Chrysler's controlling shareholder, representing descendants of Gianni Agnelli, had sought to defend the valuation assigned to their company and the potential cost savings, Autonews reports.

FCA was also fully aware of the necessity to have Nissan, Renault's ally, on board. When it came to a vote, the Nissan representatives abstained, the leftist CGT union voted against, and all other directors voted for it, Autonews writes. When it was the French state representatives' turn to vote, they insisted that the vote be postponed - a request that was denied by FCA, which withdrew its offer.



Authored by: Dieter Quartier