French politics forces FCA to withdraw merger proposal to Groupe Renault
The Board of Fiat Chrysler Automobiles N.V. (FCA) has resolved to withdraw its merger proposal made to Groupe Renault, owing to unfavourable political conditions in France.
According to a statement made by the company, FCA remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties. However it has become clear
that the political conditions in France do not currently exist for such a combination to proceed successfully.
FCA expressed its sincere thanks to Groupe Renault, in particular to its Chairman and its CEO, and also to the Alliance partners at Nissan Motor Company and Mitsubishi Motors Corporation, for their constructive engagement on all aspects of FCA’s proposal. The company statement also indicated that FCA will continue to deliver on its commitments through the implementation of its independent strategy.
Meanwhile, Groupe Renault expressed its disappointment not to have the opportunity to continue to pursue the proposal of FCA.