Fiat Chrysler has made a “transformative” merger proposal to Renault, the Italian-American carmaker said, in a deal that would create a new third-ranked global manufacturer.
Source: www.reuters.com
Fiat Chrysler Automobiles N.V. (NYSE: FCAU) has submitted a 50/50 merger proposal to Renault, creating a new third-ranked global manufacturer. Through the proposed combination, the resulting entity would benefit in the areas of connectivity, electrification and autonomous driving. It is projected that the new entity would sell approximately 8.7 million vehicles on an annual basis. The proposed deal is expected to generate €5 billion of annual run rate synergies. Under the proposal, FCA shareholders would receive a dividend of €2.5 billion.
