Looks Like There Won’t be a Renault Fiat Chrysler Merger

Wall Street learned not too long ago that Fiat Chrysler and Renault were in discussions over a possible merger but it doesn’t seem like it’s going to happen.

Fiat Chrysler is withdrawing its merger proposal for Renault. The company said on Wednesday, “It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.”
Had the merger been successful, it would have resulted in the world’s third largest car maker.

Fiat Chrysler also said that it “remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted.”

According to Bloomberg and Dow Jones reports, the merger had been cancelled after Renault’s board failed to make a decision on the bid.

Renault’s board stated on Wednesday that board directors “were unable to take a decision due to the request expressed by the representatives of the French State to postpone the vote to a later Council.”

The full press release from Renault reads as follows: Renault S.A.’s Board of Directors met today under the chairmanship of Jean-Dominique Senard, to continue reviewing with interest the proposal received from FCA (Fiat Chrysler Automobiles) for a potential 50/50 merger between Renault S.A. and FCA.

The Board of Directors was unable to take a decision due to the request expressed by the representatives of the French State to postpone the vote to a later Council.

French Finance Minister Bruno Le Maire said to BFM TV on Wednesday, “We should take our time to make sure that things are done well.”