France said it will fight for French workers to ensure their jobs are secured in the ensuing merger deal between Fiat Chrysler and Renault.
France currently owns about 15% stake in Renault, making the country one of the largest owners of Renault.
Seeing that a merger between FCA and Renault will dilute its stake, the government is seeking to negotiate to save jobs in the company.
French Finance Minister Bruno Le Maire told a local radio station in Paris that the government will seek to get ‘four guarantees.
This includes the protection of French jobs, substantial representation on the board of the new company and ensuring Renault/Fiat was a leader in the development of electric batteries.
The FCA-Renault merger is planned for a deal value of about $35 billion. Sources familiar with the matter claimed that the new entity ‘would be chaired by Agnelli family scion John Elkann, sources familiar with the talks told Reuters, while Renault chairman Jean-Dominique Senard would likely become CEO.’
The merger, when completed, could shrink France’s stake in Renault to about 7.5%.