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FCA proposes merger with Group Renault

Fiat Chrysler Automobiles N.V. has delivered a non-binding letter to the Board of Groupe Renault proposing a combination of their respective businesses as a 50/50 merger.

The FCA proposal follows initial operational discussions between the two companies to identify products and geographies where they could collaborate, particularly as they develop and commercialize new technologies.

If talks reach a positive conclusion the combined company would be a world leader in the rapidly changing automotive industry with a strong position in transforming technologies, including electrification and autonomous driving.

The other highlights of the merger talks between the companies are as follows:

• Combined business to be 50% owned by FCA shareholders and 50% by Groupe Renault shareholders – balanced governance structure and majority of Board of Directors being independent

• Combination would create the 3rd largest global OEM with 8.7m vehicle sales and a strong market presence in key regions and vehicle segments

• Broad and complementary brand portfolio would provide full market coverage, from luxury to mainstream

No plant closures as a result of the combination

• In excess of €5 billion estimated annual run rate synergies incremental to existing Renault-Nissan-Mitsubishi Alliance (Alliance) synergies

• Strong combined balance sheet allowing for flexible capital allocation and robust dividend policy

• Significant benefits to the other Alliance partners including ~€1 billion of additional estimated run rate synergies

Source: Press Release

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