FCA Grows Impatient with Renault, Withdraws Merger Offer

Following a meeting under the Chairmanship of John Elkann on Wednesday night, the Board of Fiat Chrysler Automobiles N.V. (FCA) has decided to withdraw its merger proposal made to Groupe Renault with immediate effect.

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."

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However, in the view of FCA, the political conditions in France (the country owns a 15-percent stake in Renault) do not currently exist for such a combination to proceed successfully.

In its press release, FCA expressed sincere thanks to Groupe Renault and the Alliance partners at Mitsubishi and Nissan, even though the latter is the one that reportedly forced FCA's hand by declining to support the proposed merger.

FCA says it will continue to deliver on its commitments through the implementation of its independent strategy.