Fiat Chrysler withdraws merger offer for Renault

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FiatChrysler withdraws merger offer for Renault

Fiat Chrysler said on Wednesday it was withdrawing its US$35 billion merger offer for Renault.[PARIS] Fiat Chrysler has withdrawn its US$35 billion offer to merge with Renault, a company spokesman confirmed on Wednesday, walking away from a deal that would have created a new automotive giant.

The withdrawal came after two days of meetings at Renault’s headquarters in Paris, in which the company’s chairman, Jean-Dominique Senard, sought to convince its board of the financial and industrial merits of a deal. Since Fiat Chrysler officially unveiled its proposal May 26, the plan has faced resistance by some Renault shareholders who argued that the Italian-American conglomerate was undervaluing a crown jewel of French industry. France’s powerful labor union at Renault objected to a deal, warning that a combined entity could lead to layoffs.

In a statement posted to its website Wednesday, Renault said it was unable to make a decision because representatives of the French government, which has a seat on the board, requested to postpone the vote.John Elkann, the Fiat Chrysler chairman, also held a whirlwind of meetings with French government officials in Paris over the weekend, promising that a deal wouldn’t lead to factory closures.

 

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