“After careful review of the terms of FCA’s friendly proposal, the Board of Directors decided to study with interest the opportunity of such a business combination, comforting Groupe Renault’s manufacturing footprint and creating additional value for the Alliance,” the carmaker's official statement reads.
An answer to the proposal will be provided by Renault at an yet unspecified date, and only after further discussions with FCA representatives will take place to shed more light on this major move.
As per the proposal made by FCA on Monday, the group wants to merge with Renault under a single new Dutch parent company, equally controlled by the two former entities.
It’s unclear how Nissan and Mitsubishi, Renault’s Alliance partners, see this proposition. To sweeten the deal, FCA threw in a seat on the board of the new company for a Nissan representative, but said nothing about Mitsubishi.
In FCA’s view, a merger would generate annual run-rate synergies in excess of €5 billion and open markets previously inaccessible for both.
No plants are to be closed, and the collaboration would allow profitable use of common global vehicle platforms, architectures, powertrains and technologies.
Should Renault say yes to the deal, the resulting behemoth would become the third largest car manufacturer in the world, with combined sales of around 8.7 million vehicles annually.