Renault, Fiat Chrysler Discuss Merger of Equals as Part of Alliance Talks--2nd Update
May 26 2019 - 4:11PM
Dow Jones News
By Nick Kostov and Eric Sylvers
Renault SA and Fiat Chrysler Automobiles NV have discussed the
possibility of a merger as they explore options for combining their
businesses, according to people familiar with the matter.
Talks between the two sides were in an advanced stage on Sunday
and included a range of possible outcomes, the people said. The
companies are expected to announce on Monday an agreement to
cooperate in areas that include electric vehicle technology,
manufacturing platforms and connectivity, the people said.
The companies could also announce they are studying a merger of
equals, the people said. That would create a car company with a
combined value of about $37 billion and annual vehicle production
of almost 9 million passenger cars and light trucks.
Another option under discussion is for Fiat Chrysler and Renault
to swap shares as part of an initial accord that paves the way for
a merger at a later date, the people said.
"This is definitely about more than a platform or a JV," a
person familiar with the matter.
Renault Chairman Jean-Dominique Senard met with French Finance
Minister Bruno Le Maire on Friday and presented the merger plan,
the person added. The French state, which owns 15% of Renault, is
not opposed to a merger, the person said.
Renault has called a board meeting for Monday, another person
familiar with the matter said.
A spokeswoman for Mr. Le Maire couldn't be immediately reached
for comment.
There is no guarantee the parties will reach an agreement, and
the people familiar with the talks cautioned the negotiations could
fall apart.
Renault and Fiat Chrysler are both considered symbols of
national industry in their home countries, and national pride has
often kept car makers across Europe independent. But as demand
slows for new cars, companies are more closely weighing the
advantages of global scale.
Write to Nick Kostov at Nick.Kostov@wsj.com and Eric Sylvers at
eric.sylvers@wsj.com
(END) Dow Jones Newswires
May 26, 2019 16:56 ET (20:56 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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