Fiat-Chrysler withdraws its offer to merge with Renault

According to a media report, Fiat Chrysler Automobiles (FCA) has withdrawn its offer for a merger with Renault. The company has blamed French politics for the failed merger bid.

Reports suggest that the French government, which owns a 15% stake in Renault, had sought the support of Nissan for the merger. But, the Japanese brand, that is an alliance partner of Renault decided to abstain.

The French government had reportedly asked Fiat-Chrysler to guarantee that the merger would not affect French jobs. It also wanted FCA to pay dividends to all Renault shareholders.

In May 2019, there were reports of FCA proposing a merge with the Renault Group, with each getting 50% shares in the combined business. The merger would have resulted in the creation of the world's third largest carmaker with annual sales of 8.7 million units.

Source: Economic Times