Can the Merger Deal Between Fiat Chrysler and Renault be Revived?

Posted Tuesday, June 11, 2019 by
Arslan Butt • 1 min read

We reported a few days ago about the possible merger between Fiat Chrysler and Renault being called off. However, according to a report on Reuters, there may still be some hope that the companies could be interested in resuscitating and moving ahead with their plan.

The report mentions that Renault may have to reduce its stake in Nissan from 43.4% if it wants to go ahead with a merger with FCA. However, given that the French government – the majority stakeholder in Renault, itself isn’t too keen on this merger, we wonder if this would actually progress or work out.

According to FCA and Renault, the proposed merger fell through over demands by the French government for more time to convince Nissan to back the merger. Nissan’s representatives on the board had chosen to abstain from voting on the issue.

While FCA has expressed its disinterest to revisit the proposal, French officials remain hopeful of making progress. They are set to meet with top officials at Nissan in Tokyo to secure their interest, but nothing much is confirmed so far.

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