Fiat Chrysler withdraws offer of merger with Renault

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Fiat Chrysler said it had withdrawn a proposal for a merger with Renault.

In this file photo taken on May 27, 2019 shows the logos of Italian-US carmaker Fiat Chrysler Automobiles and French auto maker Renault.FRANCE - Italian-American carmaker Fiat Chrysler on Thursday said it had withdrawn a proposal for a merger with Renault, saying it would be unable to reach an agreement with the French government.

Fiat Chrysler proposed a"merger of equals" with Renault last week which was welcomed by financial markets and had been given a conditional green light by the French government, although it warned against"any haste" regarding the proposed 50/50 merger. At Wednesday evening's board of directors vote at Renault's headquarters near Paris, all the directors were for the merger, apart from a representative of employees affiliated with the powerful CGT union and two representatives of Nissan -- a long-time Renault partner -- who abstained, the source added.

"However it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully."

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