Fiat Chrysler and Renault in talks over merger
Fiat Chrysler confirmed it made a "transformative merger" proposal to French peer Renault in a deal which would help address some of the weaknesses in both companies.
The possible deal would create the world's third-biggest carmaker. Both companies’ shares rally 15%
Stocks impacted: Fiat Chrysler (FCA), Renault (RENA)
The potential deal would be structured as a 50-50 ownership through a Dutch holding company. As a reminder, Renault, which is partly owned by the French government, is already in a three-way partnership with two Japanese companies, Nissan and Mitsubishi. The deal would create a carmaker selling 8.7 million vehicles annually with a strong presence across key regions. After the news on the possible merger, shares of both companies jumped more than 15%.
Make profit on it right now!