The Board of Fiat Chrysler Automobiles has confirmed, under the Chairmanship of John Elkann, has resolved to withdraw with immediate effect its merger proposal made to Groupe Renault.
It released a statement saying FCA remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties. However it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.
Two people close to the talks said Fiat Chrysler walked away after the French government, Renault’s largest shareholder, requested a delay in a final vote in order to consult with Nissan, Renault’s partner in the world’s biggest auto alliance.
Fiat Chrysler saw the effort to postpone the vote as a signal that the deal might ultimately go nowhere.
FCA has expressed its sincere thanks to Groupe Renault, in particular to its Chairman and its Chief
Executive Officer, and also to the Alliance partners at Nissan Motor Company and Mitsubishi
Motors Corporation, for their constructive engagement on all aspects of FCA’s proposal.
FCA will continue to deliver on its commitments through the implementation of its independent
strategy
