Italian Government supports FCA-Renault merger
04 June 2019
4 June 2019
With merger talks between Fiat Chrysler Automobiles (FCA) and Renault, the Italian Government has vocalised its support for the potential creation of the world’s third biggest automaker.
′Clearly, we support it if it is favourable for Italian industry and workers regardless of headquarters’ location.’
′Clearly, we support it if it is favourable for Italian industry and workers regardless of headquarters’ location,’ Deputy Prime Minister Matteo Salvini said.
Salvini was responding to the news that in an improved offer, FCA had said that the headquarters of the new company would be based in France.
In this new deal, the French Government, which owns a 10% stake in Renault, would be granted a seat on the board should it be accepted.
The Italian Government has taken a more hands-off approach to the deal with Italian Prime Minister Giuseppe Conte telling reporters on Monday: ′It is not the government’s task to steer the deal.’
′But it’s certainly the government’s job to make sure employment levels are preserved, including in satellite activities, which are fundamental. It’s definitely something I follow with great attention,’ Conte added.
Support and opposition
While the Italian Government may be supporting the merger, the French Government clearly needs assurances to agree to it – as demonstrated by the new deal.
Fellow French carmaker PSA is also questioning how the merger will impact the market. PSA CEO Carlos Tavares pointed out in a memo sent to PSA’s top executives last week that the merger looked to be more of a takeover and capitalised on Renault’s recent misfortunes.
′Renault’s current valuation largely explains Fiat’s interest in a merger,’ the memo said, and called the merger a ′virtual takeover of Renault by Fiat.’