Renault’s biggest shareholder, the French Government intervened the merger between Fiat Chrysler and Renault, a proposed €33 billion deal which would make the combined company the world 3rd largest automaker.
On Wednesday, after a board meeting with the shareholders and directors, Fiat Chrysler withdrew from the 50% merger. The deal would have made the new company the world’s 3 biggest automakers. Toyota is at the top while Volkswagen takes up the second place.
The Italian American automaker stated that the current political conditions and instability in France led to the fall of the merger.
The French government is the major stakeholder in Renault with a 15% stake while Nissan holds around 15% of the automaker.
According to Bruno Le Marie, the French finance minister, the French government conditions could not agree with all partners in the deal. However, Nissan provided support explicitly with the deal.
The finance minister also stated that there was no reason to rush with the deal and also wanted guarantees over jobs.