The Board of Fiat Chrysler Automobiles N.V. (FCA) yesterday, under the Chairmanship of John Elkann, withdrew its merger proposal made to Groupe Renault.
FCA initially submitted a 50/50 merger proposal to Group Renault on May 28. Political conditions in France were cited as a reason for the change of course. According to some media reports, France wanted Nissan, a partner to Renault, to support the merger, which did not materialize during negotiations.
In a statement announcing the withdrawal of its proposal, FCA stated:
“FCA remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties. However, it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.
“FCA expresses its sincere thanks to Groupe Renault, in particular to its Chairman and its Chief Executive Officer, and also to the Alliance partners at Nissan Motor Company and Mitsubishi Motors Corporation, for their constructive engagement on all aspects of FCA’s proposal,” the statement read.
