Fiat Chrysler Automobiles is said to be working on a revised merger bid for Renault in order to convince the French government.
Sources close to the discussions tell Reuters that the Italian-American car group is discussing a Renault special dividend and a host of new job guarantees. In addition, it has been proposed that if Renault goes ahead with the merger, the new company’s headquarters will be located in France and the French state will be granted a seat on the board.
The revised merger proposal also increases the guarantees to maintain Renault’s French blue-collar jobs and industrial sites from the initial two years up to a promised four.
It’s of the utmost importance for FCA to get the French government on its side as the state is the largest shareholder in Renault with a 15.01 per cent stake and also has two seats on its board. FCA, Renault, and French government officials have all declined to comment on the report.
FCA formally presented a merger plan to Renault last Monday and proposed the two companies be purchased by a listed Dutch holding company with its ownership split equally between current FCA and Renault shareholders. The plan will also see Nissan own a 7.5 per cent stake in the new automotive group.
Although initially the new company would be based in a neutral city, such as London, a government demand from France means the company that its headquarters will, in all likelihood, be located in the greater Paris area.