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| Fiat Chrysler withdraws bid for Renault | Fiat Chrysler withdraws bid for Renault |
| (about 8 hours later) | |
| Fiat Chrysler has withdrawn its merger proposal for French carmaker Renault, the Italian-American firm has said. | Fiat Chrysler has withdrawn its merger proposal for French carmaker Renault, the Italian-American firm has said. |
| The announcement followed a failed attempt by Renault board members to reach a decision on the offer. | The announcement followed a failed attempt by Renault board members to reach a decision on the offer. |
| Renault said it had been unable to reach agreement because French government representatives had requested a postponement. | Renault said it had been unable to reach agreement because French government representatives had requested a postponement. |
| The French government is the biggest shareholder in Renault, with a stake of more than 15%. | The French government is the biggest shareholder in Renault, with a stake of more than 15%. |
| Japan's Nissan also owns 15% of Renault, while Renault owns 43.4% of Nissan's shares. | Japan's Nissan also owns 15% of Renault, while Renault owns 43.4% of Nissan's shares. |
| Renault's share price fell by nearly 7% on Thursday in response to Fiat Chrysler's decision. | |
| Fiat Chrysler made the offer for Renault at the end of last month, describing it as a "transformative" proposal that would create a global automotive leader. | Fiat Chrysler made the offer for Renault at the end of last month, describing it as a "transformative" proposal that would create a global automotive leader. |
| Carmakers have faced pressure to consolidate amid major industry shifts, including towards electric vehicles. | Carmakers have faced pressure to consolidate amid major industry shifts, including towards electric vehicles. |
| "It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully," Fiat Chrysler said in a statement. | "It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully," Fiat Chrysler said in a statement. |
| But the carmaker said it remained "firmly convinced of the compelling, transformational rationale" of the proposal, the terms of which were "carefully balanced to deliver substantial benefits to all parties". | |
| Challenging times | Challenging times |
| Industry shifts toward electric models, along with stricter emissions standards and the development of new technologies for autonomous vehicles, have put increasing pressure on carmakers to consolidate. | Industry shifts toward electric models, along with stricter emissions standards and the development of new technologies for autonomous vehicles, have put increasing pressure on carmakers to consolidate. |
| Older, and often heavily indebted carmakers, also face rising competition from new entrants in the motoring sector including Tesla, as well as cash-rich companies developing driverless technology such as Amazon and Google-owned Waymo. | Older, and often heavily indebted carmakers, also face rising competition from new entrants in the motoring sector including Tesla, as well as cash-rich companies developing driverless technology such as Amazon and Google-owned Waymo. |
| The Fiat Chrysler tie-up with Renault would have allowed the companies to share development costs on key technology such as electric vehicles and self-driving cars and to create an important player in the automotive industry. | The Fiat Chrysler tie-up with Renault would have allowed the companies to share development costs on key technology such as electric vehicles and self-driving cars and to create an important player in the automotive industry. |
| The merger proposal came at a time when Renault had already been facing challenges as part of an alliance with Japan's Nissan. | The merger proposal came at a time when Renault had already been facing challenges as part of an alliance with Japan's Nissan. |
| The former chief executive of both Renault and Nissan, Carlos Ghosn, is awaiting trial following his fourth arrest in Japan amid allegations of financial misconduct. | The former chief executive of both Renault and Nissan, Carlos Ghosn, is awaiting trial following his fourth arrest in Japan amid allegations of financial misconduct. |
| The allegations have put a strain on the 20-year-old alliance, which also includes Japan's Mitsubishi Motors. | The allegations have put a strain on the 20-year-old alliance, which also includes Japan's Mitsubishi Motors. |