Fiat Chrysler said Wednesday it was withdrawing its merger proposal with France’s Renault that would have created the world’s third-largest automaker,worth almost €36 billion ($40 billion).
FCA said in a statement it took the decision because it had become “clear that the political conditions in France do not currently exist for such a combination to proceed successfully.”
Read more: Do Fiat Chrysler and Renault make a good fit?
The announcement came after Renault’s board of directors was unable to make a decision on the May 27 merger proposal at a meeting on Wednesday.
The board was “unable to take a decision due to the request expressed by the representatives of the French state to postpone the vote to a later meeting,” Renault said in a statement.
The French state has a 15% stake in Renault.
The proposed 50-50 merger had been touted as a way to overcome technological and regulatory changes to auto markets and compete with rivals.
The French state had given the merger general support, but demanded a guarantee no domestic jobs would be cut or plants closed.
cw/se (AFP, AP, Reuters)
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