Chinese company set to bid for Fiat
CHINESE SUV maker Great Wall Motor is interested in buying Fiat Chrysler, confirming reports it is pursuing all or part of the owner of the Jeep and Ram truck brands.
FCA shares rose more than 5pc in Milan on Monday to their highest in 19 years. But industry experts said any Chinese bid was likely to encounter financial, political and regulatory obstacles in the United States, China and Europe.
“With respect to this case, we currently have an intention to acquire. We are interested in (FCA),” an official at Great Wall Motor’s press relations department told Reuters. Two people familiar with the matter said Great Wall Motor had asked for a meeting with FCA to make an offer for all or part of the group.
If Great Wall, with a market value of about $16bn, bought FCA it would be China’s largest overseas car deal to date – dwarfing Geely’s 2010 acquisition of Volvo cars.
FCA said in a statement it had not been approached by Great Wall Motor, and was busy implementing its current business plan.
Its main investor, Italy’s Agnelli family, declined to comment.
FCA CEO Sergio Marchionne is seeking a partner or buyer for the world’s seventh-largest automaker to help it to manage rising costs, comply with emissions regulations and develop technology for electric and self-driving cars. (Reuters)