about the negotiations of the Italian automobile company Fiat Chrysler Automobiles (FCA) with the French automaker Renault regarding a possible merger were fully confirmed.
On Monday, FCA sent an informal letter to Renault's board of directors proposing a 50/50 merger of the business.
Under the proposal, the combined business would be split equally between the shareholders of FCA and Renault. As proposed by the FCA, the board of directors will consist of 11 members, most of whom will be independent. FCA and Renault may receive equal representation - four participants from each, also one participant can be offered by Nissan. The parent company will be listed on the Borsa Italiana in Milan and Euronext in Paris, as well as on the New York Stock Exchange.
The FCA proposal illustrates a growing desire by automakers to form partnerships in the face of increasing regulatory pressure, declining sales and rising costs associated with developing next-generation technologies such as autonomous vehicle technology.
French automaker Renault is in an alliance with Nissan Motor. The two companies share automotive parts and collaborate on technology development. Renault owns 43,4% of the authorized capital of Nissan, and the Japanese company owns 15% of Renault shares.
The merger between FCA and Renault would create the world's third-largest automaker, with annual sales of around 8,7 million vehicles.
Source: 3dnews.ru