Bomb Offer from Fiat Chrysler to Renault: Let’s Unite

From time to time, companies merge with other firms to increase their market share, improve their operations, and basically become stronger. This situation can also occur in the automotive industry. Finally, Fiat took a merger offer to Renault.

The structure that will emerge in the event of the merger of Fiat Chrysler and Renault will be the third largest automobile manufacturer in the world. In the news in the international press, the aim of the merger proposal is that the two companies should be able to overcome each other’s weaknesses. The response to the offer from Renault is a matter of curiosity.

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According to the allegations in the French press, Renault Chairman Jean-Dominique Senard conveyed the merger proposal brought by the FCA to the French Finance Minister Bruna Le Maire. 15% of Renault is owned by France and is owned by the state.

If the proposal is realized, the shares of the partnership will be distributed equally between the two partners in a German parent company to be established. Prior to the merger, FCA will distribute 2.5 billion euros to its shareholders. Thus, investors will be prevented from being affected by incompatibilities in the stock markets.

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There was also a statement from Fiat Chrysler Automobiles on the subject. In the statement, “Fiat Chrysler submitted a merger proposal to the Renault Group. FCA’s 50 percent and Renault’s 50 percent share in the partnership; there will be a balanced management structure, the majority of the board of directors will be independent. After the merger with Renault, 8.7 million vehicles were produced in the world. will form the third largest automaker. No plant closures are foreseen as a result of the merger with Renault. The partnership will create synergies of over 5 billion euros, in addition to what the Renault-Nissan-Mitsubishi alliance has already created. If the merger occurs, FCA shareholders will receive 2.5 billion euros in dividends. Shares of the resulting company Milan, It will be traded in Paris and New York.

Both manufacturers have factories in Turkey, and an extensive cooperation announcement is expected today. Renault also confirmed the merger proposal with a written offer. Automakers frequently resort to the consolidation method recently due to increasing costs and tightening regulations.

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