Fiat Chrysler merger talks with Renault said to be back on
Shares in Renault and Fiat Chrysler Automobiles rallied on Wednesday as it emerged that they are still in mergers talks.
CAC 40
8,022.41
16:59 19/04/24
Fiat Chrysler Automobiles
€12.57
16:25 23/03/23
Renault
€47.73
17:19 19/04/24
According to Italy's Il Sole 24 Ore, a deal between the two car companies could be on the table again. Talks collapsed back in June when Fiat pinned the blame on the French government - Renault's largest shareholder with 15% - for scuppering the deal, which would have created the world's third largest auto maker.
FCA said at the time: "It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully."
According to reports, Renault 's board was all set to approve the deal on 5 June but was unable to proceed after the French government asked the company to postpone the vote to a later board meeting. It was understood that the French state was trying to delay the decision as it looked to gain the support of Renault's Japanese alliance partner, Nissan Motor Co.
The government was also said to have sought guarantees that no jobs would be lost in the process.
At 1100 BST, Renault shares were up 4.9% at €51.11 and FCA shares were 3.5% higher at €11.55.
CMC Markets analyst David Madden said: "The auto sector is under pressure from the slowdown in China, global trade tensions, and the possibility of a US-EU trade spat is looming over the sector too, so it is no wonder Fait Chrysler and Renault are considering teaming up to strengthen their position to weather the storm."