Fiat Chrysler closer to strike merger deal with Renault
Fiat Chrysler is plotting a €32.6bn all-share merger with Renault, a deal that would reshape the global automotive industry and add new life to the French carmaker’s alliance with Japan’s Nissan.
The proposal for a “transformative merger” would see FCA and Renault own 50% of the business, which would have combined sales of 8.7m vehicles a year, surpassing General Motors and placing itself in third just behind Volkswagen and Toyota.
Fiat Chrysler stated that the combined group would have nearly €170bn in annual revenue on operating profit above €10bn and net profit going beyond €8bn.
It would have a large presence in North America as well as Europe and Latin America, and expertise stretching from small electric vehicles to pick-up trucks.
The proposed tie-up comes despite the departure over the past year of the dominant executives at the two companies who long advocated consolidation.
Fiat Chrysler's Sergio Marchionne passed away in July, while Mr. Ghosn has had his own tribulations as he was arrested in Tokyo on charges of financial misconduct.
The deal would bring together Italy’s Agnelli family, which owns 29% of Fiat Chrysler, and the French government, which owns 15% of Renault, as the dominant shareholders in the merged company.
Both parties have commanded voting rights beyond their respective shareholdings, but that would fall away through the deal.
Source: Smart Trend Team
- just now