The Deal That Ran Out of Road: How the Fiat-Renault Merger Died
- After two inconclusive board meetings, Elkann called it quits
- French government asked for more time to get Nissan on board
Shortly after 9 p.m., as the sun began to set on the rotund glass facade housing Renault SA’s headquarters on the outskirts of Paris, the board called a break. The group had gathered for the second time in as many days to sign off on a proposed merger with Fiat Chrysler Automobiles NV. As the talks dragged on, a delegate for the state asked to liaise with Finance Minister Bruno Le Maire, who was having dinner back in town at his hulking ministry protruding into the River Seine.
Le Maire laid down a red line for Martin Vial, his representative at the table and the voice of Renault’s biggest and most powerful shareholder. France wanted a commitment from Renault partner Nissan Motor Co. to back the combination. Abstention -- as signaled earlier by the Japanese side -- wasn’t good enough, Le Maire said, fearing that Nissan might begin undermining the alliance if it couldn’t be held accountable with a firm vote.