New merger proposals between Fiat and Renault could create 'world automotive leader'

Fiat Chrysler has made a successful merger proposal for carmaker Renault, confirmed yesterday (May 27).

The combined business would mean 50 per cent would be owned by Fiat shareholders, with 50 per cent by Renault stockholders.

This merger is set to be internationally recognised, with a Fiat spokesperson stating it would create a “world leader in the rapidly changing automotive industry with a strong position in transforming technologies, including electrification and autonomous driving”.

This follows on from news that carmakers are being told to make ‘major industry shifts’, especially in the making of electric transport.

Shares have since risen in both companies since the announcement was made.

If both firms’ 2018 financial results were stacked up, the combined result would be worth around £149bn, with an operating profit of over £8bn.

If this is to go ahead, Japan’s Nissan - which has a plant in Sunderland - and the French government will own around 7.5 per cent of the merged company.