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Fiat Chrysler Automobiles is allegedly working on a revised merger plan with Renault. The revisions are centered around a list of demands from the French government, such as job guarantees and the locations of the company’s headquarters.
Reuters reports FCA is revising the merger offer to include a special dividend for Renault in the new company, a perk likely intended to sweeten the deal for Renault’s partners and the French government. FCA is also layering in job guarantees for Renault at the behest of the French government, including representation on the new entity’s board of directors.
The original merger deal had job guarantees as well, but the guarantees lasted only two years. Sources state there are discussions to extend those industrial job guarantees to four years.
Sources familiar with the discussions say FCA is also revising the merger deal to move the new company’s headquarters to France, something the French government has reportedly demanded as part of the deal.
Satisfying the French government is an important step in getting this merger approved. The French state is the largest shareholder of Renault with a nearly 15 percent stake and currently has two board seats at Renault.
While FCA is working on this revised merger plan, Renault’s board of directors is set to meet early this week to discuss the original merger plan submitted by FCA last Monday. Once discussed, the two automakers will likely take the next steps to launch formal merger talks.
