Fiat Chrysler Automobiles and Renault are preparing to announce something significant on Monday.
A report over the weekend surfaced indicating that FCA and Renault have been in talks for a tie-up of their operations “that could include joining large portions of their businesses.”
Two unnamed sources with alleged knowledge of the discussions between the car manufacturer’s told Reuters on Saturday that the situation is still “fluid” but report that some kind of tie-up could address many of the respective weaknesses of the companies.
It is reported that the plan currently being discussed would involve some transfer of equity. It is believed that the companies are considering a merger of equals but are also investigating other tie-up options. Renault chairman Jean-Dominique Senard reportedly presented plans for an FCA-Renault merger to French finance minister Bruno Le Maire on Friday.
If FCA and Renault are to join forces, it would be a huge move as FCA is worth $20 billion while Renault is worth $17 billion, the Detroit Free Press notes.
FCA has been actively pursuing a potential merger for years now and under the leadership of the late Sergio Marchionne, was famously pushed back by General Motors over a possible tie-up. Current FCA chief executive Mike Manley recently said that the Italian-American car manufacturer can stand on its own but did reveal that it is open to deals with other car manufacturers.
In March, reports surfaced indicating that Renault was planning to launch a bid for Fiat Chrysler Automobiles in a move which had been previously discussed under the past guidance of former Renault-Nissan Alliance chairman Carlos Ghosn.