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France takes note of Fiat Chrysler's decision to abandon merger offer for Renault: minister

Source: Xinhua| 2019-06-06 17:42:35|Editor: xuxin
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PARIS, June 6 (Xinhua) -- The French government has noticed the decision by the Italian-American automaker Fiat Chrysler (FCA) to withdraw its merger offer for the French automaker Renault, said Finance Minister Bruno Le Maire on Thursday.

In a statement released earlier on Thursday, FCA announced withdrawal "with immediate effect" of its merger proposal to Renault, saying "It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully."

Last week, it proposed a 50-50 merger with Renault to create the world's third biggest automaker.

In response to the FCA decision to abandon the deal, Le Maire reviewed in a press release the French government's stance on the previously proposed merger. "As soon as this offer was presented, the state which holds 15.1 percent stake in Renault, welcomed it openly and worked constructively with all partners," he said.

According to him, the French government had asked for guarantees for keeping jobs, ensuring France to be well-represented in the board of the new entity, while maintaining Renault's existing alliance with Japan's Nissan.

"An agreement had been reached on three of the four conditions. What remained to be obtained was the explicit support of Nissan," the minister said, adding that the state, which is a main stakeholder in France's second leading car maker, had asked to delay a decision on the deal in order to win the support of all partners.

Speaking to the French media, Budget Minister Gerald Darmanin said he hoped merger "talks could resume at some time in the future."

In early trading on Thursday, Renault shares lost 6.08 percent to 52.22 euros (about 58.61 U.S. dollars).

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