Described as a merger of equals, Fiat Chrysler has just announced a formal bid to acquire Renault.
In merger proposal titled: “Proposal for a Transformative Merger with Groupe Renault”, FCA said it has delivered a non-binding letter to the Board of Groupe Renault proposing a combination of their respective businesses as a 50/50 merger.
The company said that the proposed combination would create a global automaker, preeminent in terms of revenue, volumes, profitability and technology, benefitting the companies’ respective shareholders and stakeholders.
FCA said the combined business would sell approximately 8.7 million vehicles annually, would be a world leader in EV technologies, premium brands, SUVs, pickup trucks and light commercial vehicles and would have a broader and more balanced global presence than either company on a standalone basis.
FCA and Renault have a combined market cap over $37 billion before the announcement.