Fiat Chrysler Unveils Renault Merger Proposal
May 27 2019 - 1:12AM
Dow Jones News
By Sean McLain
Fiat Chrysler Automobiles NV said Monday it was proposing a
merger with Renault SA, a move that is likely to shake up the
global automotive industry.
In a news release, the company said the combined business would
be 50% owned by FCA shareholders and 50% by Groupe Renault
shareholders with a "balanced governance structure." They said the
majority of the board would be independent.
Renault already has an alliance with Nissan Motor Co. Renault
and Nissan have a 20-year-old partnership in which they share
technology and vehicle parts. Renault owns 43.4% of Nissan, while
Nissan owns 15% of Renault.
The Renault-Nissan relationship has come under strain as the two
sides debate whether to overhaul the cross-shareholding arrangement
and how to make joint decisions on future models and
technologies.
If Renault and FCA merge, it would create a car company with a
combined value of about $37 billion and annual vehicle production
of almost nine million passenger cars and light trucks. Such a
combination would rank as the third-largest auto maker by
production, behind Volkswagen AG and Toyota Motor Co. but ahead of
General Motors Co.
Write to Sean McLain at sean.mclain@wsj.com
(END) Dow Jones Newswires
May 27, 2019 01:57 ET (05:57 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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