Updated: May 27, 2019 11:46:52 am
Fiat Chrysler has made a “transformative” all-share merger proposal to French rival Renault, the Italian-American carmaker said on Monday, in a deal to create a new third-ranked global manufacturer. The FCA proposal, finalised in overnight talks with Renault, was being discussed at a meeting of the French group’s board early on Monday.
The deal would create a carmaker selling 8.7 million vehicles a year with a strong presence across key regions, automotive markets and technologies, generating 5 billion euros ($5.6 billion) in annual savings, FCA said in a statement.
The “broad and complementary brand portfolio would provide full market coverage, from luxury to mainstream”, it said.
The proposed deal would merge the two carmakers under a listed Dutch holding company. After payment of a 2.5 billion- euro special dividend to FCA shareholders, each group would receive 50 percent of the combined entity in new stock.
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Pressure for consolidation among carmakers has grown with the challenges posed by electrification, tightening emissions regulations and expensive new technologies being developed for connected and autonomous vehicles.
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