By Nick Kostov and Eric Sylvers 

Renault SA and Fiat Chrysler Automobiles NV have discussed the possibility of a merger as they explore options for combining their businesses, according to people familiar with the matter.

Talks between the two sides were in an advanced stage on Sunday and included a range of possible outcomes, the people said. The companies are expected to announce Monday an agreement to cooperate in areas that include electric vehicle technology, manufacturing platforms and connectivity, the people said.

The companies could also announce they are studying a merger of equals, the people said. Another option under discussion is for Fiat Chrysler and Renault to swap shares as part of an initial accord that paves the way for a merger at a later date, the people said.

(More to come)

(END) Dow Jones Newswires

May 26, 2019 14:17 ET (18:17 GMT)