PARIS - Fiat Chrysler said it has abandoned its $35 billion merger offer for Renault, blaming French politics for scuttling what would have been a landmark deal to create the world’s third-biggest automaker.
The French government, which owns a 15% stake in Renault, had also pushed Fiat Chrysler for guarantees that France would not lose jobs, and for a dividend to be paid to Renault shareholders, including the government, people familiar with the talks said. Fiat Chrysler’s original proposal offered no special dividend to Renault shareholders.
Fiat Chrysler had proposed that its shareholders receive a 2.5 billion euro special dividend as part of the merger, had it been completed.The two companies told investors a merger would cut operating costs and investments by 5 billion euros or more a year. Fiat Chrysler stood to gain access to Renault’s superior electric drive technology to meet mandates for zero-emission cars.
The sudden end to the merger talks came after midnight in Paris, after Fiat Chrysler and French government officials had reached a tentative agreement that cleared the way for Renault’s board to consider moving forward, people familiar with the situation said. Fiat Chrysler’s decision to walk away is a defeat for Senard, former head of tire maker Michelin. He invested heavily in the proposal to merge with Fiat Chrysler, and traveled to Japan last week to make the case personally to executives of Nissan and third alliance partner Mitsubishi that a merged Renault-Fiat Chrysler could work closely with them as well.
Vive la France! 🙃
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fiat Chrysler withdrawing Renault merger offer blamed on French government meddlingFiat Chrysler has withdrawn an offer for a merger-of-equals with Groupe Renault, and people close to the negotiations between the two companies are pointing the finger at what they described as meddling by the French government. french and germans just buy french and german and hold back on global production of really anything right now... they aint buying ours they havent for years.. we dont need em we doin fine It's a sad moment. I really enjoyed my Renault and was hoping they'd return to the US market.
Source: CNBC - 🏆 12. / 72 Read more »
The Latest: FCA withdraws merger offer with RenaultPARIS (AP) — The Latest on the potential merger of carmakers Renault and Fiat Chrysler (all times local): 1 a.m. Fiat Chrysler says it has withdrawn an offer to merge with French... horacioalonso16 Fiat and Renault is a merger not seen since Kmart and Sears. Why? I can pretend I have three cars if that was a the case! FIAT-CHRYSLER-RENAULT
Source: AP - 🏆 728. / 51 Read more »
Fiat Chrysler Withdraws Merger Offer for RenaultFiat Chrysler has withdrawn its proposal to merge with Renault after the French auto maker’s alliance partner, Nissan Motor, refused to back the deal. So the world’s largest manufacturer of unwanted cars ain’t gonna happen? Less than a week after they offered it? Somebody must have bought a ton of options the past days. Excellente nouvelle, Renault n’aurait jamais dû considérer une offre aussi ridicule
Source: WSJ - 🏆 98. / 63 Read more »
Fiat Chrysler withdraws proposed merger with RenaultFiat Chrysler has withdrawn its proposal to merge with French automaker Renault — a deal that would have reshaped the global auto industry and helped the carmakers compete in the race for electric and self-driving vehicles. We need electric cars! Chrysler sucks anyhow.
Source: CNN - 🏆 4. / 95 Read more »
Fiat Chrysler withdraws merger proposal for RenaultFiat Chrysler is reportedly withdrawing its merger proposal for Renault
Source: CNBC - 🏆 12. / 72 Read more »
FCA, Renault face tall odds delivering on cost-cutting promises in mergerFiat Chrysler Automobiles NV and Renault SA promise huge savings from a mega-mer... The quality of the merger depends on the operation of the quality of the borrowing and the currency of the leadership statements of the acquisition systems for the labor supply and the quality of the joining of the authorized forces The merger is about survival in a post-SUV, post $5 per gallon America. The cost-cutting promises are to placate Wall Street weirdos who can’t see past next quarter.
Source: Reuters - 🏆 2. / 97 Read more »