Fiat Chrysler Automobiles (FCA) says it has resolved to "withdraw with immediate effect" the merger proposal made to Renault, citing political conditions in France.
Towards the end of May 2019, the French automaker confirmed receipt of a proposal from Fiat Chrysler Automobiles regarding a potential 50/50 merger transaction.
But FCA's latest press statement said its board of directors had come to the decision to pull the offer after meeting under the chairmanship of John Elkann.
“FCA remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties,” the automaker said.
“However, it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully,” the firm added.
FCA went on to express its “sincere thanks” to Groupe Renault as well as to the Alliance partners at Nissan and Mitsubishi, for their “constructive engagement on all aspects” of the proposal.