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France contemplating Stellantis-Renault Group merger

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France considering Stellantis-Renault Group merger

The federal government of France is reportedly learning a plan for a merger between Stellantis and the Renault Group, wrote Automotive Professional citing a report by Il Messaggaro.

A perceived profit from a mixed Stellantis-Renault Group organisation is that the merged group could be giant sufficient to counter the competitors from Chinese language in addition to German automakers, in response to the Australian information outlet.

In response to the preliminary report by the Rome-based newspaper, Stellantis chairman John Elkann has issued an announcement to say that “there isn’t any plan into account relating to merger operations with different producers,” including that Stellantis is concentrated on implementing its long-term marketing strategy.

Elkann can also be head of Exor, the Agnelli family-owned holding firm that’s the largest single shareholder in Stellantis, notes Reuters. The French authorities, by way of its historic funding in Peugeot-Citroen, personal 6.1% of Stellantis shares, and controls 9.1% of the group’s voting inventory. It additionally has a 15% stake in Renault, notes Automotive Professional.

France considering Stellantis-Renault Group merger

The assertion by Elkann is available in distinction to feedback by Stellantis CEO Carlos Tavares, who was quoted by Bloomberg as noting that Renault had exited the Russian market, which is its second-largest after its native France, and its scope of cooperation with Nissan had been diminished, thus showing weak to mergers and acquisitions.

In the meantime, the Renault Group has Renault, Alpine, Dacia and Mobilize underneath its banner, and is itself a part of the Renault-Nissan-Mitsubishi alliance. Nissan introduced final December that it will likely be shopping for again 5% of its shares from Renault, who will ultimately scale back its stake within the Japanese carmaker to fifteen%.

The information wire notes hypothesis {that a} slowing of the electrical automobile market pressured the Renault Group to cancel plans for an preliminary public providing (IPO) for its EV and software program division, Ampere.

Stellantis is itself a product of a merger between Fiat Chrysler Vehicles (FCA) and Groupe PSA, which was accomplished in January 2021, having first introduced merger plans in 2019.

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