Start Shares Fiat withdraws tender for merger with Renault

Fiat withdraws tender for merger with Renault

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The automaker Fiat Chrysler FCA has surprisingly withdrawn its bid to merge with the French manufacturer Renault during the night on today. That’s what a spokesman said in Rome.

It had become clear that at present the political conditions for such a union to be successful, are not given in France, communicated the Italian-American automaker in the morning in a statement in London.

Renault previously announced with decision to postpone

FCA continues to believe that the merger proposal was convincing and would bring benefits to all parties.

According to Fiat circles, the reason for the refusal was France’s attempt to postpone a merger decision. Another insider said that France had wanted to delay the 30 billion euro merger to advise with Nissan and the government in Tokyo. France holds 15 percent of Renault.

Renault had previously announced that it would postpone a decision on formal merger talks. The board of directors had discussed the merger offer but could not make a decision as government officials requested the move, Renault said.

Le Maire warned against hurry

FCA had publicized its request last week to merge with Renault. The companies would have grown together to become the world’s third-largest automaker and challenged the market leaders Volkswagen and Toyota. Fiat Chrysler had suggested that both groups of companies – FCA and Renault – each hold half of the new company. Together, they would come to 8.7 million vehicles a year.

Renault reacts immediately after publication of the offer of the Italian-American concern. The French state also reacted positively. However, France’s Economics Minister Bruno Le Maire recently warned against too much haste in the talks. „Let’s take the time to get things right,“ Le Maire told TV broadcaster BFMTV.