Production line at Fiat’s Belo Horizonte plant
THE board of Fiat Chrysler Automobiles (FCA) has withdrawn, “with immediate effect,” its $35 billion merger proposal to Renault.
A source close to the French carmaker’s board said FCA took the decision after France sought to delay a decision on the deal.
In a statement released on its media site, FCA said “it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully,” referring to the proposed merger.
Renault directors failed to reach a verdict on FCA’s May 27 merger proposal at a board meeting, the company said.
The board 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 meeting,” Renault said in a statement.
In its statement FCA thanked Renault and alliance partners Nissan and Mitsubishi Motors “for their constructive engagement on all aspects of FCA’s proposal.” With a report from Reuters
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