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5/27, 7:34 AM (Source: TeleTrader)
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Fiat Chrysler submits merger proposal with Renault

Fiat Chrysler Automobiles NV on Monday submitted a proposal for a transformative merger with Renault SA, which would create the third largest global original equipment manufacturer. Ownership over the combined business would be equally split between FCA and Groupe Renault shareholders and would be achieved through a 50/50 merger under a Dutch parent company.

Before the transaction is closed FCA shareholders would also receive a dividend of €2.5 billion, in order to mitigate the disparity in equity market values. In a non-binding letter sent to Renault's board, Fiat Chrysler estimated that the combined business would sell approximately 8.7 million vehicles annually.

Previously, the media reported that the two companies were negotiating a global tie-up, which would ultimately lead the Italian-American carmaker joining the Renault-Nissan-Mitsubishi Alliance.

Breaking the News / MA