Fiat gives up on merger with Renault

Fiat Chrysler Automobiles (FCA) has withdrawn its proposed merger with Renault. If it had gone through, the merger would have resulted in the world’s third-largest automaker. The deal, worth US$ 35bn, would have have been a 50-50 partnership.

In a statement released by FCA, it said: “it´s clear there are no political conditions in France for this combination to proceed.” That is because the French government, which owns a 15% stake in Renault, said it would only approve the deal if the partnership between the French automaker and Nissan were maintained.

Meanwhile, Renault released a statement saying that its board “cannot decide because of the explicit request by the French State´s representatives to postpone the vote to a future meeting.”

After the news was released, Fiat’s shares fell 4.62%.

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