- Fiat Chrysler has proposed a €32.6 billion ($36.5 billion) all-share merger with fellow automakers Nissan and Renault.
- The deal could create the world’s third-largest car manufacturer, behind Volkswagen and Toyota.
- The "transformative merger" would be a major shift for the auto industry and would spark plans to boost electric vehicle production.
Fiat Chrysler’s merger talks with Nissan and Renault could result in a possible €32.6 billion ($36.5 billion) all-share merger would create the world’s third-largest carmaker in production terms, behind Volkswagen and Toyota.
Fiat Chrysler (FCA) and Renault would each own 50% of the businesses, which would be larger than General Motors with combined sales of 8.7 million vehicles a year and combined annual revenues of €170 billion, FCA said in a release.
The intent of the deal would be to help the combined brands to boost their presence in the rapidly growing electric vehicle and autonomous driving market which is being targeted by Silicon Valley.
FCA is part-owned by the Agnelli family, while the French government has a 15% stake in Renault. Differences in market value mean that FCA shareholders would receive a €2.5 billion dividend. The company’s shares are trading up 10% as of 9.45 a.m in London (4.45 a.m ET); Renault’s stock is up 15%.
Renault and Nissan have had a strategic partnership, which later included Mitsubishi, since 1999. A Renault-Nissan merger was partly the brainchild of former chief executive Carlos Ghosn. The 64-year-old has been in and out of jail in Japan, having been arrested in November for allegedly misreporting his salary and compensation. He denies the charges.
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