Fiat Chrysler withdraws its $35 billion merger offer for Renault
Fiat Chrysler said on Wednesday it was withdrawing its $35 billion merger offer for Renault, calling off what would have been a landmark deal to create the world`s third-biggest automaker.
Fiat Chrysler said on Wednesday it was withdrawing its $35 billion merger offer for Renault, calling off what would have been a landmark deal to create the world`s third-biggest automaker. A source close to the French carmaker`s board said FCA took the decision after France sought to delay a decision on the deal.
Renault directors failed to reach a verdict on FCA`s May 27 merger proposal at a board meeting that ran late into Wednesday night, the company said. The board was "unable to take a decision due to the request expressed by the representatives of the French state to postpone the vote to a later meeting", Renault said in a statement.
The deal, cast as a merger of equals that would tackle the costs of far-reaching technological and regulatory changes, would have altered the landscape for rivals including General Motors and Peugeot-maker PSA Group, which recently held inconclusive talks with Fiat Chrysler.
FCA, Renault and its 15% shareholder, the French state, had been locked in talks over the Italian-American manufacturer`s bid. France had broadly welcomed the tie-up, on condition it guaranteed Renault`s domestic blue-collar jobs and plants.
Analysts had warned of complications, including Renault`s existing alliance with Nissan, the French state`s role as Renault`s largest shareholder and potential opposition from politicians and workers to any cutbacks.