TIL Desk/Business/Paris/ Fiat Chrysler Automobiles NV has withdrawn its proposal to merge with Renault SA after the French automaker’s alliance partner, Nissan Motor Co., declined to back the deal. Confirming the withdrawal on Wednesday night, Fiat Chrysler said it remained convinced of the “transformational rationale” of its proposal.
“However it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully,” the Italian-American automaker said.
The French state, Renault’s top shareholder, went into a marathon board meeting on Wednesday evening saying its prime condition for approving the $40 billion merger was that the deal fit within the framework of Renault’s decades-long alliance with Nissan.
Nissan’s two representatives on Renault’s board planned to abstain in the vote, the people said, raising doubts about Nissan’s commitment to preserving the alliance if the merger were to proceed.
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