That didn't take long.
Hot off the press barely a week after it first shook the automotive airways, Fiat Chrysler Automobiles announced it is withdrawing its merger proposal with Renault effective immediately. In a press release, FCA says it “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.”
The exact nature of these political conditions is unclear, but here’s where the plot thickens. Renault issued a brief statement shortly before FCA’s announcement saying its Board of Directors “was unable to take a decision due to the request expressed by the representatives of the French State to postpone the vote to a later Council.” The reasons behind this postponement are unknown, but in its announcement, Renault said its Board of Directors were continuing to review FCA’s proposal. So it appears this rather sudden breakup is one-sided.
The whole FCA-Renault thing has left many people scratching their heads, especially since Renault was working on a potential merger with Nissan and Mitsubishi. Rumours about an FCA connection surfaced back in March, though it was centred around Renault and Nissan coming together with FCA eventually entering the mix. It’s believed this recent FCA/Renault proposal didn’t include Nissan or Mitsubishi, though in its announcement on the matter, FCA thanks the two automakers for “constructive engagement on all aspects of FCA’s proposal."
This certainly isn’t the first time FCA merger talks have crossed the interweb. Potential deals with numerous Chinese automakers have cropped up in recent years, not to mention rumours about partnerships with Hyundai. For now, at least, it seems FCA will continue steaming along under its own power.
FCA withdraws merger proposal to Groupe Renault
By reading the following release, you agree to be bound by the following limitations and qualifications: This press release is for informational purposes only and is not intended to and does not constitute an offer or invitation to exchange or sell or solicitation of an offer to subscribe for or buy, or an invitation to exchange, purchase or subscribe for, any securities, any part of the business or assets described herein, or any other interests or the solicitation of any vote or approval in any jurisdiction in connection with the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. This press release should not be construed in any manner as a recommendation to any reader of this press release.
This press release is not a prospectus, product disclosure statement or other offering document for the purposes of Directive 2003/71/EC of the European Parliament and the Council of November 4th, 2003, as amended, in particular, by Directive 2010/73/EC of the European Parliament and the Council of November 24th, 2010, as amended and as implemented in each member State of the European Economic Area and under French and Dutch law.
An offer of securities in the United States pursuant to a business combination transaction will only be made, as may be required, through a prospectus which is part of an effective registration statement filed with the US Securities and Exchange Commission. You may obtain copies of all documents filed with the SEC regarding the proposed transaction, documents incorporated by reference, and FCA’s SEC filings at the SEC’s website at http://www.sec.gov.
The Board of Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA), meeting this evening under the Chairmanship of John Elkann, has resolved to withdraw with immediate effect 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.
FCA expresses its sincere thanks to Groupe Renault, in particular to its Chairman and its Chief Executive Officer, and also to the Alliance partners at Nissan Motor Company and Mitsubishi Motors Corporation, for their constructive engagement on all aspects of FCA’s proposal.
FCA will continue to deliver on its commitments through the implementation of its independent strategy.
Communication of Renault’s Board of Directors
Boulogne-Billancourt, June 5th, 2019 – Renault S.A.'s Board of Directors met today under the chairmanship of Jean-Dominique Senard, to continue reviewing with interest the proposal received from FCA (Fiat Chrysler Automobiles) for a potential 50/50 merger between Renault S.A. and FCA.
The Board of Directors was unable to take a decision due to the request expressed by the representatives of the French State to postpone the vote to a later Council.