Fiat Chrysler and Renault can resume merger talks

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The company is waiting for the outcome of the meeting of French President and Prime Minister of Japan.

Merger talks car manufacturers Fiat Chrysler Automobiles NV (FCA) and Renault SA, which ended inconclusively in early June, and may resume in the near future depending on the outcome of the two events held this week in Japan. It is reported online edition of the Chronicle.info with reference to Interfax-Ukraine.

25 June will be held the General meeting of shareholders Nissan, partner of Renault in the Alliance. The ballot question will be put on new appointments to the Board of Directors of the company, and if proposals made by the management are approved, the Board will primarily be composed of independent Directors who can more sympathetic to the prospects of the merger with Renault FCA.

Later, the President of France Emmanuel macron will meet with the Prime Minister of Japan Shinzo Abe before the G20 summit in Osaka. It is expected that the two leaders will discuss the prospects of Renault and Nissan, which this year celebrates its 20th anniversary.

Both events will be attended by the Chairperson of the Board of Renault Jean-Dominique sénart.

According to informed sources, the management of all three companies (FCA, Renault and Nissan) admits the idea of the resumption of merger talks, although fears that the mutual conditions interfere with the success of the transaction.

Association-Renault, FCA may lead to the creation of the auto giant with a market capitalization of $37 billion, annual revenue of approximately 170 billion euros and a capacity to produce 9 million cars per year, which would put him in third place in the world on this indicator after Volkswagen and Toyota.

As reported, the merger talks were terminated in early June, partly because of the position of the French government, which owns 15% of Renault, and partly because of the lack of enthusiasm from the leadership of Nissan, having two seats in the Board of Directors of Renault. Nissan Renault significantly exceeds the number of produced cars, but the company owns only 15% non-voting stake in the French partner, while Renault owns a 43.4% stake in Nissan.

Sources believe that Nissan will be ready to support this Union-Renault, FCA, if in the transaction the French company will agree to reduce its stake in Nissan, while the Alliance partners, which also includes Japan’s Mitsubishi, will receive more independence in decision-making.

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