If the deal is successful, the two companies form the world’s third-largest automaker in terms of production, behind only Toyota and Volkswagen.
In a press release released on May 27, Renault said it is carefully considering the proposal from Fiat Chrysler Automobiles (FCA). The French automaker decided to “study with interest in the advantages of combining this kind of business.” The details will be announced in the near future, according to Reuters.
Earlier, a report may surprise many people about the possibility of merging between Renault and FCA. The French firm also confirmed that it had received a joint venture proposal with a ratio of 50/50 between the two parties.
In a very brief press release, Renault revealed that the board of directors had met on the morning of May 27 and discussed the agreement. However, no decisions have been made yet.
Two carmakers, currently ranked No. 8 and No. 9 in the world, still discuss “an effective cooperation that could lead to a complete merger,” according to Bloomberg. However, the deal will basically not involve Nissan and Mitsubishi – the two brands are currently in league with Renault. In fact, Renault is working with FCA without approval from Japanese carmakers.
The first information on the merger between Renault and FCA began in March, appearing after a report by the Financial Times. Accordingly, the merger can happen in about 12 months later.
The French government, Renault’s largest shareholder (15%), basically supports the merger but needs to consider the relevant details, a spokeswoman said.
There was information in 2017 that a Chinese automaker intended to acquire Fiat Chrysler after FCA announced its bid. Soon after, world media said Hyundai was also interested in acquiring Fiat Chrysler to increase power.