The logo of FIAT carmaker is seen on a vehicle in Cairo. File photo/Reuters
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 per cent of the combined entity in new stock.
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.
Renault’s board of directors will meet Tuesday to formulate its response to a merger proposal by Fiat Chrysler, which is likely to lead to talks aimed at creating the world’s third-largest automaker, the company said.
Global shares climbed on Monday as investors snapped up automaker stocks following confirmation of merger talks between Fiat Chrysler and Renault, and after pro-EU parties kept a firm grip on power in elections to the European Parliament.
Fiat Chrysler and Renault are in talks on a comprehensive global tie-up that could address some of the main weaknesses of both carmakers, two sources with knowledge of the discussions told Reuters.
The Abu Dhabi National Oil Company (Adnoc) signed on Sunday, two framework agreements with Mubadala Investment Company (Mubadala) and Emirates Nuclear Energy Corporation (Enec)
Khalaf Ahmad Al Habtoor - Founding Chairman of the Al Habtoor Group (AHG) - welcomed Shlomi Fogel of Ampa Group, Co-owner, Chairman and CEO - at the AHG headquarters on Al Wasl Road, Dubai.
The European Union (EU) wants to arm itself with new powers to control big technology companies, a newspaper reported on Sunday. The proposed plan includes forcing tech giants to break up or sell some of their European operations
Dubai Chamber of Commerce and Industry (DCCI) has announced the launch of the Dubai Chamber Interview Series, a virtual event series featuring live-one-on-one interviews with prominent local and international business figures from a wide range of industries.