Tuesday , October 26 2021

FCA-Renault: merger is still possible


O merger between FCA and Renault still could materialize.

According to the latest press reports, in fact, the two car companies would have decided restart the interviews was shipwrecked last week when the Italian-American suddenly withdrew her offer to the French.

Today the cards on the table have changed again and the merger between FCA and Renault has once again awakened the interest of the entire market, just as the alliance with Nissan began to creak.

Read also: Renault-Nissan: it's a fight

FCA-Renault merger: back-to-fashion hypothesis

On May 27, FCA proposed to Renault an au pair merger that immediately imposed new considerations on the future of the entire market. automotive sector.

Then, after days of discussion and in spite of the great interest shown, the French began to postpone the final decision. A choice not particularly appreciated by Elkann, who on the night between June 5 and 6 issued a statement that surprised the entire market.

"The Board of Directors of Fiat Chrysler Automobiles, which met tonight under the chairmanship of John Elkann, decided to withdraw with immediate effect the proposed merger advanced to the Groupe Renault. "

The reason? To be researched, the note continued, in the absence of adequate political conditions in France and, according to some, in Nissan's skepticism.

The failure of the negotiations led the market to price a definitive match between the two companies. The lack of a merger between FCA and Renault allowed us to speculate on other operations, that between Fiat and Hyundai.

And, according to some press reports, Italian-Americans and French have unexpectedly resumed negotiations in recent days in order to find possible margins to reopen negotiations.

Among the main nodes, the rumors continued, certainly the Nissan weight which has already played an important role in the failure of the negotiations. Winning the goodwill of the Japanese will be critical to the success of the merger.

Expressing positively on the hypothesis of approximation between the two companies was also Bruno Le Maire who defined the deal as a good opportunity, but to be pursued without affecting the alliance with Nissan.

It is unclear whether the merger between FCA and Renault will pass. At the moment the two companies neither confirmed nor denied anything, then it will only be time to say how this second part of the negotiations ends. The automotive market will once again be put on hold.

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