Rumour: Hyundai in talks to buy out Fiat Chrysler Automobiles

According to a media report, Hyundai is looking to buy out Fiat Chrysler Automobiles (FCA). The takeover could happen before CEO Sergio Marchionne retires in April 2019.

It has been reported that Hyundai is waiting for FCA's share prices to drop before initiating the takeover. The main driving force behind the merger is Paul Singer of Elliot Management - a hedge fund, which has invested over US$ 1 billion in Hyundai, Kia and Mobis - Hyundai's parts division.

It may be noted, that Chinese carmaker Great Wall had also shown interest in purchasing the Jeep brand earlier. However, any attempts by a Chinese brand to buy out FCA are likely to be blocked by President Donald Trump. Hence, at present, Hyundai appears to be the most likely candidate for the merger. Compared to its Japanese rivals, Hyundai is fairly new to the US market. The brand is expected to leverage the existing distribution network of FCA brands like Chrysler and Jeep. 

That said, neither Hyundai, nor FCA have confirmed reports of the probable takeover.

While some people in FCA favour a merger with the Volkswagen Group, such a move is likely to face opposition within Germany and Italy as it could trigger plant closures and loss of jobs. Besides, Volkswagen is currently dealing with issues like the diesel emissions scandal.

Source: Asia Times

Love Cars Live Cars