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Fiat Withdraws Deal with Renault SA

Jun 07, 2019
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By Farrah Khan

On Wednesday, Fiat Chrysler withdrew their merger agreement with Renault SA. The initiation of the agreement was proposed based on the similarities of the companies and its operations. Fiat includes brands such as Jeep and the RAM pick-up truck whereas Renault focuses on autonomous driving and production with emissions-free cars.

Discussions between the two companies have started in the beginning of 2019 and have escalated in May. However, negotiations have deteriorated when the French government on Fiat’s board began making larger demands. One source expresses to Fox Business, “If it’s this hard to get through the agreement, what’s this going to be like over the next five years? The risks associated with that simply became too great.” Renault top shareholders reported that there are concerns with over the merger and how it will affect the long standing relationship and alliance with Nissan.

Although the companies have reached a deadlock situation and will not be continuing with their deal, Fiat remains open to other mergers and opportunities to partner with other companies.

 

Read the full article from Fox Business here.