Fiat and Renault merger talks collapse, shares drop
The move came after the Renault board met for six hours outside of Paris to consider the merger, only to postpone a decision at the request of the government, which owns 15% of the French automaker.
Renault shares were down over 7.1%, FCA stocks in Milan dipped nearly 2% on the news
Stocks impacted: Fiat Chrysler (FCA), Renault (RENA)
The Board of Fiat Chrysler has resolved to withdraw with immediate effect its merger proposal made to Renault. The merger had aimed to achieve 5.6 billion in annual synergies, with FCA gaining access to Renault’s superior electric drive technology and the French firm getting a share of FCA’s lucrative Jeep and RAM brands. It is reported that Nissan Motor, French automaker Renault’s existing partner, was the primary sticking point in the merger. Renault has an alliance with Nissan Motor. Under that alliance, Renault owns 43.4% of Nissan. Nissan owns 15% of Renault.
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