Fiat Chrysler withdraws merger offer for Renault

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Author (Corporate)
Publication Date June 2019
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Fiat Chrysler made a merge offer for Renault at the end of May 2019, which would have created the world's third largest automaker.

On 5 June, the Fiat Chrysler board decided to put out of its merge proposal with the Renault group. The move came after the French state, which has 15% stake in Renault, sought to delay a decision on the deal in order to win the support of Nissan Motor Co, Renault's Japanese alliance partner. Nissan said it would abstain at a Renault board meeting to vote on the merge proposal.

After the failed merger, France's finance minister Bruno Le Maire announced that the French state was willing to reduce its stake in the French automaker if this move would help to strengthen the alliance.

The Fiat Chrysler tie-up with Renault would have allowed the companies to share development costs on key technology such as electric vehicles and self-driving cars.

Related Link(s)
Commentary and Analysis
Bloomberg, 06/06/2019: The Deal That Ran Out of Road: How the Fiat-Renault Merger Died
Euro|Topics, 07/06/2019: Why did Renault-Fiat Chrysler merger collapse?
France24, 10/06/2019: FCA-Renault merger could be revived with reduced Nissan stake

France24, 26/05/2019: Renault and Fiat Chrysler to announce merger talks: sources
EurActiv, 28/05/2019: Renault to study Fiat-Chrysler merger offer ‘with interest’
Deutsche Welle, 28/05/2019: France says Fiat-Renault merger must protect French jobs
Deutsche Welle, 06/06/2019: Fiat Chrysler ends merger talks with Renault
EurActiv, 06/06/2019: Fiat-Chrysler withdraws Renault merger offer
Euronews, 06/06/2019: Fiat Chrysler withdraws merger offer for Renault blaming French politics
BBC News, 06/06/2019: Fiat Chrysler withdraws bid for Renault
France24, 07/06/2019: French government derailed €33bn Fiat-Renault merger, says Italy
Politico, 08/06/2019: French government, Fiat Chrysler blame each other for failed Renault bid
Bloomberg, 08/06/2019: France Ready to Cut Renault Stake to Support Nissan Ties
Reuters, 10/06/2019: Exclusive: FCA-Renault revival may hinge on Nissan stake cut - sources
Reuters, 10/06/2019: Renault-FCA merger idea remains good opportunity: France's Le Maire

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