Minggu, 26 Mei 2019

Fiat Chrysler and Renault consider share swap as part of tie-up - Financial Times

Automakers Fiat Chrysler and Renault are looking at an exchange of shareholdings or investment in each other as part of wide-ranging tie-up talks that will be confirmed on Monday, according to people close to both companies.

Discussions between the two sides about extensive co-operation were first reported by the Financial Times on Saturday. A deal would help the groups pool resources as they battle to survive in an industry beset by falling sales and technological disruption.

The two carmakers are expected to announce that they are in talks to collaborate over several areas including connectivity, electric vehicle technology and manufacturing platforms, the people said.

They are also likely to say that discussions include the possibility of an exchange of shareholdings, which could take the form of a share swap or an investment in each others’ business, one of the people added.

This person said FCA’s co-operation with Renault was conditional on Renault shelving plans to merge with Nissan in the short term, a move that would allow both the French and Japanese companies to focus on their own businesses. This condition is unlikely to be included in Monday’s expected announcement, the person added.

Discussions are still going on and may not lead to a deal, people close to the talks cautioned.

Renault and FCA declined to comment.

An announcement is scheduled for early morning on Monday, with Renault expected to hold a board meeting immediately afterwards to discuss the proposals.

The talks with FCA will allow Renault to broaden its options as its global alliance with Japan’s Nissan is grappling with deteriorating profits in the US and an industry-wide shift to self-driving electric vehicles.

The reason behind the talks with FCA is purely strategic and there is no intent of strong arming Nissan over other potential scenarios, according to a person close to the French company’s senior management.

“It’s really a win win for everyone. It’s not to hurt or to disavow anyone,” said another person briefed on Renault’s thinking.

Nevertheless, negotiations to add a new partner to the alliance are expected to further strain relations with Nissan as executives prepare to meet for their monthly alliance meeting in Tokyo on Wednesday.

Additional reporting by Arash Massoudi

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https://www.ft.com/content/846bc2f0-7fbf-11e9-9935-ad75bb96c849

2019-05-26 14:38:00Z
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