If the two companies had managed to close the deal for $ 40 billion, the result would have been the birth of the world’s third-largest automaker. This would give Europe a dominant power in the sector, along with VW. Fiat Chrysler, however, has withdrawn from the negotiating table because of the French government.
The reason is because of the political interference from France. The government has declared its desire for post-merger not to be curtailed, if possible, by French officials from Renag. This intrusion did not appeal to the board of directors. In a public statement, chairman of the board, John Elkann, said the position of the company.
Renault also has a long-standing deal with Nissan, which also seems to have opposed the deal. Nissan’s management has come to the conclusion, without Renault, their business in Europe will be compromised.
The news of the potential merger only exacerbated speculation about mega-mergers in the industry. Given the weak sales and overproduction that is being observed, these speculations will continue.
Trader Martin Nikolov