In a dramatic turn of events this evening, Fiat Chrysler Automobiles has formally withdrawn its proposal to merge with Groupe Renault. The withdraw is credited to “politics” within the French government, which owns a 15 percent stake in Renault.
Minutes ago FCA issued a press release confirming the FCA board of directors met this evening to discuss the proposed merger. The FCA board elected to officially withdraw its merger proposal made to Groupe Renault.
“FCA remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties. However it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully,” stated the release.
FCA did not detail which conditions set fourth by the French state derailed the merger talks, though reports have suggested the French government had demands ranging from job guarantees to seats on the combined entity’s board of directors.
The FCA press release goes on to state FCA will continue to “deliver on its commitments through the implementation of its independent strategy.”