Fiat Chrysler Unveils Renault Merger Proposal

By Sean McLain

Fiat Chrysler Automobiles NV said Monday it was proposing a merger with Renault SA, a move that is likely to shake up the global automotive industry.

In a news release, the company said the combined business would be 50% owned by FCA shareholders and 50% by Groupe Renault shareholders with a "balanced governance structure." They said the majority of the board would be independent.

Renault already has an alliance with Nissan Motor Co. Renault and Nissan have a 20-year-old partnership in which they share technology and vehicle parts. Renault owns 43.4% of Nissan, while Nissan owns 15% of Renault.

The Renault-Nissan relationship has come under strain as the two sides debate whether to overhaul the cross-shareholding arrangement and how to make joint decisions on future models and technologies.

If Renault and FCA merge, it would create a car company with a combined value of about $37 billion and annual vehicle production of almost nine million passenger cars and light trucks. Such a combination would rank as the third-largest auto maker by production, behind Volkswagen AG and Toyota Motor Co. but ahead of General Motors Co.

Write to Sean McLain at sean.mclain@wsj.com

(END) Dow Jones Newswires

May 27, 2019 01:57 ET (05:57 GMT)

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