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FCA And Renault's merger might continue afterall

FCA And Renault's merger might continue afterall

chitchatboy

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It is rumored that Fiat Chrysler Automobiles and Renault have resumed talks to revive its potential merger. Its merger plan failed a couple of weeks ago and FCA blamed the French government for it.

According to Reuters, Nissan wants Renault to significantly reduce its 43.4% stake in return for its support of a $48billion merger between FCA and Renault.

In the article, FCA chairman John Elkann and Renault chairman Jean-Dominique Senard have been holding talks about continuing the negotiation, but both companies are refusing to comment on the reports officially. A senior advisor from FCA, Toby Myerson was also spotted at the Nissan headquarters in Japan for discussions with top management and would have likely include Nissan Chief Executive Hiroto Saikawa.

Also in the article, it explained that the Nissan head has long believed that its alliance with Renault needed “re-balancing”. This is because Nissan is much larger than Renault but it only holds a 15% stake in the French automaker and no voting rights, while Renault owns 43.4% of Nissan.

The French government has since responded, willing to reduce its 15% stake in Renault in an effort to see the merger come to fruition, but only if that would benefit both FCA and the Alliance in general.




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