Fiat Chrysler withdraws merger offer for Renault

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Author (Corporate)
Publication Date June 2019
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Summary:

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 https://www.bloomberg.com/news/articles/2019-06-06/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? https://www.eurotopics.net/en/221295/why-did-renault-fiat-chrysler-merger-collapse?zitat=221258#zitat221258
France24, 10/06/2019: FCA-Renault merger could be revived with reduced Nissan stake https://www.france24.com/en/20190610-business-fiat-chrysler-renault-merger-nissan-stake-g20-finance-trade-digital-tax-bugatti

News
France24, 26/05/2019: Renault and Fiat Chrysler to announce merger talks: sources https://www.france24.com/en/20190526-renault-fiat-chrysler-announce-merger-sources-france
EurActiv, 28/05/2019: Renault to study Fiat-Chrysler merger offer ‘with interest’ https://www.euractiv.com/section/transport/news/renault-to-study-fiat-chrysler-merger-offer-with-interest/
Deutsche Welle, 28/05/2019: France says Fiat-Renault merger must protect French jobs https://p.dw.com/p/3JHbb
Deutsche Welle, 06/06/2019: Fiat Chrysler ends merger talks with Renault https://p.dw.com/p/3JvWd
EurActiv, 06/06/2019: Fiat-Chrysler withdraws Renault merger offer https://www.euractiv.com/section/transport/news/fiat-chrysler-withdraws-renault-merger-offer/
Euronews, 06/06/2019: Fiat Chrysler withdraws merger offer for Renault blaming French politics https://www.euronews.com/2019/06/06/fiat-chrysler-withdraws-merger-offer-for-renault-blaming-french-politics
BBC News, 06/06/2019: Fiat Chrysler withdraws bid for Renault https://www.bbc.co.uk/news/business-48537453
France24, 07/06/2019: French government derailed €33bn Fiat-Renault merger, says Italy https://www.france24.com/en/20190607-italy-france-state-government-derailed-fiat-chrysler-renault-merger-business-automobiles
Politico, 08/06/2019: French government, Fiat Chrysler blame each other for failed Renault bid https://www.politico.eu/article/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 https://www.bloomberg.com/news/articles/2019-06-08/france-ready-to-cut-renault-stake-to-support-nissan-ties-afp
Reuters, 10/06/2019: Exclusive: FCA-Renault revival may hinge on Nissan stake cut - sources https://www.reuters.com/article/us-renault-m-a-fiat-chrysler-nissan-excl/exclusive-fca-renault-revival-may-hinge-on-nissan-stake-cut-sources-idUSKCN1TB03O
Reuters, 10/06/2019: Renault-FCA merger idea remains good opportunity: France's Le Maire https://uk.reuters.com/article/us-renault-m-a-fiat-chrysler-nissan-mini/renault-fca-merger-idea-remains-good-opportunity-frances-le-maire-idUKKCN1TB0ZB

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