Renault To Continue To Study With Interest FCA's 50/50 Merger Proposal

(RTTNews) - French automaker Groupe Renault (RNSDY.PK, RNSDF.PK, RNT.L) on Tuesday said its Board of Directors has decided to continue to study with interest the opportunity of a proposed 50/50 merger with Fiat Chrysler Automobiles N.V. (FCAU).

The decision was made at the Board's meeting on Tuesday to review in detail the elements of the proposal. The company has also decided to extend the discussions on this subject.

The Board will meet again on Wednesday, June 5 at the end of the day.

It was on May 27 that Fiat Chrysler said it delivered a non-binding letter to Renault regarding a proposal for combination of their respective businesses as a 50/50 merger.

As per terms of the proposal, shareholders in each company would receive an equivalent equity stake in the combined company, with combination to be carried out as a merger transaction under a Dutch parent company.

The combined entity's board would initially be composed of 11 members. The parent company would be listed on the Borsa Italiana, Euronext and NYSE.

The company expect that the combined business would sell approximately 8.7 million vehicles annually.