Renault is set to decide next week whether or not it will proceed with talks about a merger with Fiat Chrysler Automobiles.
Sources familiar with the issue told Reuters that Renault’s board members will meet informally for work sessions within the coming days and decide early next week if they want to further explore merging with FCA. If the French automaker decides to go ahead, it will likely sign a non-binding agreement with FCA to proceed with its proposal to negotiate a full merger.
FCA formally proposed a 50/50 merger with Renault on Monday that would be operated via a Dutch holding company and would also give a 14.5 per cent stake to Exor, the listed holding company owned by the Agnelli/Elkann family.
In its announcement regarding the merger, Fiat Chrysler said that bringing the two groups together would create the world’s third largest car manufacturer with approximately 8.7 million annual vehicle sales.
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“Combining the businesses will bring together complementary strengths. The combination would create a brand portfolio that would provide full market coverage with a presence in all key segments from luxury/premium brands, such as Maserati and Alfa Romeo, to the strong access brands of Dacia and Lada, and would include the well-known Fiat, Renault, Jeep and Ram brands as well as commercial vehicles,” FCA said.
On its part, Renault issued a brief statement yesterday confirming that a proposal was indeed on the table.
“After careful review of the terms of FCA’s friendly proposal, the Board of Directors decided to study with interest the opportunity of such a business combination, comforting Groupe Renault’s manufacturing footprint and creating additional value for the Alliance.”
