FCA and Renault merger back on the table
FCA and Renault are looking for ways to resuscitate their collapsed merger plan and secure the approval of the French carmaker’s alliance partner Nissan Motor.
The two companies are looking for ways to save their collapsed merger plan
Stocks impacted: Fiat Chrysler (FCA), Renault (RENA)
As a reminder, FCA Chairman John Elkann abruptly withdrew his merger offer on June 6 after the French government, which is Renault’s biggest shareholder, blocked a vote by its board and demanded more time to win Nissan’s backing. The failure deprived the two companies of an opportunity to create the world’s third-biggest carmaker with 5.6 billion in promised annual synergies. Now, according to the reports, Nissan is poised to urge Renault to significantly reduce its 43.4% stake in the Japanese company in return for supporting a FCA-Renault tie-up. The auto sector gained 0.5% on Monday amid signs that Fiat and Renault were looking for ways to resuscitate their collapsed merger plan.
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