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Peugeot Chief Sees Fiat Deal as ‘Virtual Takeover’ of Renault

  • Proposal called ‘opportunistic’ in note to top officials
  • PSA had earlier held talks with Italian-American carmaker
A worker attaches a Renault diamond badge to the front grille of an automobile inside a  Renault SA automobile plant.

A worker attaches a Renault diamond badge to the front grille of an automobile inside a  Renault SA automobile plant.

Photographer: Andrey Rudakov/Bloomberg

Fiat Chrysler Automobiles NV’s plan to merge with Renault SA drew criticism from the French carmaker left on its own, Groupe PSA, that contrasts with backing for the deal from investors and governments.

In a memo sent to top officials of the Peugeot owner on Monday, CEO Carlos Tavares highlighted risks to the proposal. Renault was chosen mainly because its value was depressed by the troubled alliance with Nissan Motor Co. following the Carlos Ghosn affair, according to the memo. Paris-based PSA held talks with Fiat earlier this year on potential collaboration.