Merger Fiat-Renault: a real opportunity, according to Bruno Le Maire

The proposed merger between Renault and the Italian-american Fiat Chrysler (FCA) "is a real opportunity for Renault and the French automotive industry", said

Merger Fiat-Renault: a real opportunity, according to Bruno Le Maire

The proposed merger between Renault and the Italian-american Fiat Chrysler (FCA) "is a real opportunity for Renault and the French automotive industry", said Friday the French minister of the Economy Bruno Le Maire, while a board of directors of the constructor renault is expected Tuesday. However, the French State, main shareholder of Renault, "will ensure strict compliance of the four conditions" that he has asked for this project, said the minister, listing: "the respect of the alliance Renault-Nissan, the preservation of jobs and industrial sites, a governance and balanced participation of the future group at the european project "battery electric".

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"This project in particular allows you to deal with technological challenges considerable challenges facing the automotive industry: the electric vehicle, the autonomous vehicle, the vehicle is connected, and it allows synergies necessary to invest in these technologies," said Bruno Le Maire. The board of directors of Renault shall meet on Tuesday to respond to the proposal of merger made by Fiat Chrysler, and consider the opening of exclusive negotiations with the group italo-american, said the company. Fiat Chrysler has proposed last Monday the French manufacturer Renault as a "merger of equals" to form the number three in the global automotive industry. The proposal has been welcomed by the markets and the French State, but of the sensitive areas remain to be addressed.

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The proposed merger would create a new giant, with an annual production of 8.7 million vehicles and that weigh more than 30 billion euros on the stock exchange. The new entity would be owned 50% by the shareholders of the constructor, Italian-american, and 50% by Renault and would be listed in Paris, New York and Milan. The current president of FCA, John Elkann, grandson of Gianni Agnelli, the iconic boss of Fiat, who died in 2003, would be tipped to become president of the new entity, while Jean-Dominique Senard, current president of Renault, would become the executive chairman.

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the FCA has ensured that the merger would result in no closure of production sites, while referring to annual synergies of more than 5 billion euros. Since Monday, some voices have been raised to cast doubt on the reality of these synergies or criticize an approximation which does not promote not enough, the Renault group or would pose threats on the job.

Updated Date: 01 June 2019, 00:00

Kathleen Lees

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