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May 28, 2019 - Fiat Chrysler’s proposed merger with French rival Renault would create the world’s third-biggest carmaker and spark plans to boost electrification and autonomous vehicle production.

A Fiat Chrysler Automobiles (FCA)-Renault tie-up would produce a combined market capitalization of more than €32 billion ($36 billion) and total global sales of 8.7 million vehicles, behind Volkswagen Group and Toyota with 10.9m and 10.6m respectively. The plan would save €5bn a-year by sharing research, purchasing and other activities, according to FCA.

Bloomberg reports that FCA and Renault would each own 50% of the businesses, and the transaction would be structured through a Dutch holding company. Renault shareholders, including the French government, would get a premium of about 10 per cent. In a statement, Renault’s board said it would study what it called a “friendly” proposal.

Sources
PUBLISHED:28/05/2019; STORY: Graphic News
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