‘Talks on Re­nault-Fiat merger could be re­vived’

The Hindu Business Line - - NEWS -

Plans to merge car­mak­ers Re­nault and Fiat Chrysler could re-emerge de­spite the break­down of ne­go­ti­a­tions last week, France’s Trans­port Min­is­ter said on Tues­day, join­ing a cho­rus of French of­fi­cials hop­ing the deal could be re­vived.

Asked if talks be­tween the two com­pa­nies were over, Elis­a­beth Borne told BFM TV: “I think it is not closed.”

Borne’s com­ments fol­low sim­i­lar re­marks by French Fi­nance Min­is­ter Bruno Le Maire, who also said he felt a merger be­tween France’s Re­nault and Ital­ian-Amer­i­can Fiat Chrysler Au­to­mo­biles (FCA) re­mained a “good op­por­tu­nity.”

Doors open

French Bud­get Min­is­ter Ger­ald Dar­manin said last week as well that he hoped the door had not closed on a deal.

Last week, FCA pulled out of $35 bil­lion merger talks with Re­nault, with both com­pa­nies blam­ing the French gov­ern­ment.

France has a 15 per cent stake in Re­nault and the col­lapse France Trans­port Min­is­ter Elis­a­beth Borne’s com­ments fol­low sim­i­lar re­marks by French Fi­nance Min­is­ter Bruno Le Maire

of the talks de­prived the com­pa­nies of an op­por­tu­nity to cre­ate the world’s third-big­gest car­maker with 5 bil­lion eu­ros ($5.6 bil­lion) in promised an­nual syn­er­gies.

FCA and Re­nault are still look­ing for ways to re­sus­ci­tate their merger plan and win the ap­proval of Re­nault’s al­liance part­ner Nis­san, sources close to the com­pa­nies have told Reuters.

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