Fiat Chrysler proposes €33bn merger with Renault
The transaction will be structured as a 50-50 ownership through a Dutch holding company and will not entail plant closures
Milan — Fiat Chrysler Automobiles proposed to merge with Renault in a deal that would create the world’s third-biggest carmaker. The transaction will be structured as a 50-50 ownership through a Dutch holding company, Fiat said on Monday, adding that it has an implied premium of about 10% for Renault investors and will not entail plant closures. Exor, the investing arm of Fiat’s founding Agnelli family, is set to become the largest single investor in the combined entity. The French carmaker said its board will meet later in the morning to discuss the proposal. The talks come as carmakers worldwide face intense pressure to spend heavily on new technologies and adapt to trends such as car-sharing. Falling sales in the world’s biggest markets — China, the US and Europe — have brought fresh urgency to consolidate. Fiat and Renault expect their joint annual “synergies” to amount to more than €5bn, coming from areas such as purchasing power. “Fiat and Renault are looking for surer footing...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.