Stellantis denies report of Renault merger

Milan — Stellantis chair John Elkann on Monday denied the carmaker is hatching merger plans, responding to press speculation about a possible French-led tie-up with rival Renault.

“There is no plan under consideration regarding merger operations with other manufacturers,” Elkann said in a statement, adding that the group is focused on the execution of its long-term business plan.

Elkann also heads Exor, the Agnelli family holding company that is the largest single shareholder in Stellantis.

Italian daily Il Messaggero had said on Sunday that the French government, which is Renault’s largest shareholder and also has a stake in Stellantis, was studying plans for a merger between the two groups.

Shares in Renault initially rose more than 4% on Monday, with traders citing media speculation over the potential combination. They pared gains to 1% after Elkann’s comments.

Renault has a much lower market valuation than Stellantis, the product of a merger in 2021 between France’s PSA group and Fiat Chrysler, with brands including Fiat, Peugeot and Jeep.

Equita analysts said such a deal would face clear antitrust obstacles, with social issues resulting from a duplication of facilities in France.

Stellantis has come under fire from the Italian government, which has accused it of acting against the national interest. Industry minister Adolfo Urso last week raised the prospect of the Italian government taking a stake in Stellantis to help to balance the French influence.

Reuters