A few days ago FCA Group submitted a formal merger proposal to the Renault Group. This fact was welcomed with caution at the French manufacturer's headquarters because before giving a yes, they had to calmly study the document. To do this, they announced that they would take a few days to issue a professional , which in the second instance was postponed again. However, after several relevant events, the offer has been canceled by his emissary.
When the FCA Group Send to Renault this document, I was aware of the limitations. Nissan y Mitsubishi they are an involved party and as was logical, they do not want to lose their partner. However, the reason why the Italian-American consortium has canceled its merger offer has not been because of the signing of the diamond. This one has arrived at terms imposed by its majority shareholder: the Government of France.
The FCA Group does not accept the conditions of the Government of France
This one, since he snatched the firm from Louis renault, handles with an iron fist what happens in the constructor. Thus, to accept a merger between the two companies, he requested several privileges. The first, the maintenance of the work centers and the almost 50 thousand jobs that the firm has in France. The second, and perhaps the most controversial, is to have a seat, and decision-making capacity, in the board of directors of the resulting company.
Taking into account the holistic nature of the fusion, the Italian-American group has not been able to accept both conditions. With her, he hoped to achieve an important cost savings, estimated at about 5 billion euros per year. In addition, it would allow them to reach third place as car manufacturers, with almost 9 million units.
What will happen finally?
According to Press release official issued by FCA Group
"The FCA Group remains firmly convinced of the compelling and transformative rationale for a proposal that has been widely appreciated since its introduction, whose structure and terms were carefully balanced to provide substantial benefits to all parties. However, it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully."
«FCA expresses its sincere thanks to Groupe Renault, in particular to its President and its Executive Director, and also to the partners of the Alliance in Nissan motor company y Mitsubishi Motors Corporation, for their constructive commitment in all aspects of the FCA Group proposal»
However, the chances of fusion They have been left in "borage water". On the one hand, the finance Minister French, Bruno Le Maire, has confirmed that they will take their time to make the merger with their conditions. On the other hand, the italian prime minister, Giuseppe Conte, also announces that he hopes that the interests of his country are respected. In conclusion: each one «each one bringing the ember to his sardine».
Source - FCA Group