FCA Drops Renault Merger Offer for Lack of Nissan Support
New York, June 5 (Jiji Press)--Fiat Chrysler Automobiles NV on Wednesday withdrew a merger proposal to Renault SA due to a lack of support from Nissan Motor Co. <7201>, an alliance partner of Renault, according to The Wall Street Journal.
In a statement to announce the withdrawal, FCA said it remains "firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted."
"However, it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully," FCA continued.
Nissan's two representatives sent to the Renault board planned to abstain in a vote on the FCA-Renault merger Wednesday, the U.S. business daily quoted people familiar with the matter as saying.
The attitude has prompted "doubts about Nissan's commitment to preserving the alliance if the merger were to proceed," according to the newspaper's online edition.
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