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Fiat Plans Merger With Renault in Latest Auto Industry Jolt

  • Renault’s board to consider proposal it calls ‘friendly’
  • Franco-Italian combination would create third-biggest carmaker
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The talks come as automakers face pressure to spend on new technologies. Bloomberg’s Tommaso Ebhardt reports.(Source: Bloomberg)
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Fiat Chrysler Automobiles NV proposed a merger with Renault SA to create the world’s third-biggest carmaker as manufacturers scramble for scale to tackle an expensive shift to electrification and autonomous driving.

The transaction would be structured as a 50-50 ownership through a Dutch holding company, Fiat said Monday. Renault shareholders, including the French government, would get an implied premium of about 10%. In a statement, Renault’s board said it would study what it called a “friendly” proposal.