Renault and Fiat shares skid after $35 billion merger deal collapseshttps://indianexpress.com/article/business/companies/renault-and-fiat-shares-skid-after-35-billion-merger-deal-collapses-5768020/

Renault and Fiat shares skid after $35 billion merger deal collapses

"With FCA pulling its merger offer, one has to wonder how much the French state is set on limiting Renault’s strategic and valuation opportunities despite having only a 15% stake," analysts at brokerage Jefferies wrote in a note.

Renault shares slumped 7% while Fiat’s shares fell around 3% in early trading. REUTERS/Eric Gaillard/File Photo

Shares in carmakers Renault and Fiat Chrysler (FCA) both fell sharply on Thursday after Fiat Chrysler abandoned its $35 billion merger offer.

Renault shares slumped 7% while Fiat’s shares fell around 3% in early trading.

“With FCA pulling its merger offer, one has to wonder how much the French state is set on limiting Renault’s strategic and valuation opportunities despite having only a 15% stake,” analysts at brokerage Jefferies wrote in a note.

“We expect both shares to react negatively but see FCA having wider strategic options and Renault shares more downside risk near-term.”