Fiat Chrysler Proposes Merger With Renault

Fiat Chrysler is seeking a merger with Renault that is valued at more than $35 billion. Fiat is reportedly proposing an all-share “merger of equals” in which a 2.5-billion euro dividend would first be paid to current Fiat shareholders, after which investors in each company would receive half of the final institution.

But analysts also warned of big complications, including Renault’s existing alliance with Nissan, the French state’s role as Renault’s largest shareholder and potential opposition from politicians and workers to any cutbacks.

https://www.reuters.com/article/us-fiat-chrysler-renault/fiat-chrysler-seeks-renault-merger-to-meet-auto-challenges-idUSKCN1SX0DI 

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Fiat with Chrysler parts and Nissan CVT would end badly. 

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Well, at least they can hold hands now while diving deeper into debt.

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A merger of equals? Where have I heard that before? A merger of equal with Daimler didn't end up good for Chrysler. 

 

 

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That was never really a merger of equals. Daimler bought Chrysler but given the brand and political sensitivities, they pitched it as a merger of equals publicly. Daimler sold off Chrysler to a private equity firm at a loss a few years later, which made pretty clear which brand was more equal than the other. 

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