|Author (Corporate)||Cardiff EDC|
|Publication Date||June 2019|
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.
|Subject Categories||Business and Industry|
|Subject Tags||Automotive Industry|
|Countries / Regions||France|