• Fca-Renault, Minister Le Maire: "Yes to merger, but without haste"
  • Fca-Renault: Le Maire asks Elkann for other guarantees
  • FCA, presented a proposed merger on a par with Renault

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06 June 2019 Farewell to the "wedding" between Fiat Chrysler and the Renault group. The brand chaired by John Elkann decided "to withdraw the proposed merger with Groupe Renault with immediate effect". The decision was taken after the new postponement requested by the board of the French house after the pressing of the Paris government.

The epilogue of a difficult day
This unexpected ending came after a very long day. The Renault board of directors, convened for the second consecutive day in Bologna-Billancourt, on the outskirts of Paris, after six hours of discussion, said it was unable to make a decision due to the wish expressed by the representatives of the French state to postpone the vote to a further council ". To push this decision, according to some rumors reported by the press, also contributed the attitude of Nissan hostile to the operation, which would put at risk the alliance with the French group .

Elkann: "It takes courage to close a dialogue. Beyond was unreasonable"
"It takes courage to start a dialogue like we did. But when it becomes clear that
the conversations have been brought to the point beyond which it becomes unreasonable to go, it is necessary to be equally brave to interrupt them and immediately return to the important work we have to do ". This was written by John Elkann, president of Fca, in a letter sent to employees of the group. "But now, I know you agree with me, it's time to focus on the goals we set for this year."

The bid decision was correct
"The decision to start these conversations with Groupe Renault was correct, a decision we made after preparing ourselves on all fronts," continues Elkann. "The broad consensus he received was a clear signal that our timing , as well as the balance of what we proposed, were correct. The decision to interrupt the dialogue was not taken lightly but with a goal in mind: the protection of the interests of our society and of those who work here, clearly considering all our stakeholders'.

"We will continue to be open"
"We will continue to be open to opportunities of all kinds that offer the possibility of strengthening and accelerating the realization of this strategy and the creation of value". Thus John Elkann, Fca president. "But now, I know you agree with me, it's time to focus on the goals we set for this year," concludes Elkann.

The pressures of the French authorities
Therefore, during the night a second 'black smoke' arrived from the board of the French group, after the board of directors that had taken place on Tuesday 4 June had not made a decision on the green light for the merger proposal. On Tuesday, Renault reiterated its interest in the operation with Fca, explaining that it wanted to study the subject further and referring it to a new council. The second meeting was called for yesterday, Wednesday 5 June, at 6 pm and after midnight the new postponement arrived, at the end of a day in which various voices in France expressed themselves on the operation.

First of all, that of the French Economy Minister, Bruno Le Maire (the French State holds 15% of Renault). "Take the time to do things right. This is an important operation, which aims to create a world champion of the automobile: no hurry", was the invitation to the parties by Le Maire, interviewed by Bfm Tv . "This merger is, as I have always said, an opportunity ... but there are conditions, and these conditions have been set from the beginning," recalling the need for the presence of an operational office in France, of the representation of the French state on the board of directors of the future entity and guarantees for industrial sites and employment.

Another request for referral came from the president of the French region Hauts-de France, Xavier Bertrand, who wrote a letter to the president of the French Republic, Emmanuel Macron, asking to postpone Renault's decision on the proposed merger advanced by Fca. "I am in a region where there are two very important Renault factories and I asked the President of the Republic this afternoon that no decision has been taken in a hurry about the merger between Renault and Fca", the French politician then explained to the microphones of 'Public Senat', coming out of a hearing in the Senate on the steel industry. "I don't understand why an offer that was presented at the end of May, must already be approved, apparently for exclusive negotiations."

Le Maire takes note: State asked for 5 days
"An agreement had been found" on the three of the four conditions that had been set by the French state "and remained to gain explicit support from Nissan." So the French state "had hoped that the Board would grant five more days to secure the support of all the parties involved". Thus in a note the French Ministry of Economy after the decision of Fca. The Minister of the Economy, Bruno Le Maire, reads the note, "takes note of Fca's decision to withdraw its offer presented on Sunday, May 26. Since the presentation of this offer, the shareholder state of Renault, with a share of 15.01 %, welcomed this offer and worked constructively with all the parties involved ".

French Minister Darmanin: negotiations could resume
The negotiations between Fca and REnault "could resume in the near future, we'll see. We must not close the door, we must continue to work". This was stated by the French Minister for Public Accounts, Gérald Darmanin, interviewed by France Info, saying he was "very happy that there is a somewhat patriotic industry that pays attention to French interests".