7/31/2019

FCA Remains Open to Merger Options

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Fiat Chrysler Automobiles CEO Mike Manley tells analysts the company remains open to revive merger talks with Renault or begin them with another partner.

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Fiat Chrysler Automobiles CEO Mike Manley tells analysts the company remains open to revive merger talks with Renault or begin them with another partner.

Manley declined to elaborate but declares there is “no doubt why there still would be interest in it.”

FCA approached Renault in late May about merging in a $35 billion deal that would have created the world’s third-largest carmaker. Analysts praised the idea, in spite of uncertainties about its impact on the troubled Renault-Nissan-Mitsubishi alliance.

The combination would create an automotive giant with sales of roughly 8.7 million vehicles per year. FCA predicted the union would save the two companies €5 billion ($5.5 billion).

But FCA withdrew its offer less than two weeks later, citing concerns about the French government’s influence over the negotiations. France holds a 15% stake in Renault and sought to delay a board decision on the offer.