Fiat Chrysler Automobiles has abruptly and unexpectedly withdrawn its offer to merge with Renault following days of discussions between the automakers and the French government.
A press release statement issued late on Wednesday evening stated “that the political conditions in France do not currently exist for such a combination to proceed successfully.” The Wall Street Journal claims that’s not the only reason why the proposal has been withdrawn.
According to unnamed sources close to the matter, negotiations soured as Nissan refused to back the merger. Two representatives from Nissan on the Renault board offered abstentions while voting on the merger and it’s believed that both FCA and Renault were concerned the Japanese car manufacturer would back out of its long-standing alliance with Renault.
The New York Times reports that Renault chairman Jean-Dominique Senard had been seeking to convince the company’s board of the financial and industrial merits of a deal during two days of intense meetings at Renault’s headquarters this week. Earlier on Wednesday, Renault said it had been unable to make a decision because French government representatives requested to postpone a new vote.
Evidently, FCA did not want to wait around and confirmed that the proposal made official on May 26 was no longer on the table.
“The Board of Fiat Chrysler Automobiles N.V, meeting this evening under the Chairmanship of John Elkann, has resolved to withdraw with immediate effect its merger proposal made to Groupe Renault…FCA will continue to deliver on its commitments through the implementation of its independent strategy,” the company said.