Tuesday 25 June 2019

Renault and Fiat shares skid after $35bn merger deal collapses

Shares in carmakers Renault and Fiat Chrysler (FCA) both fell sharply on Thursday after Fiat Chrysler abandoned its $35bn merger offer
(Gene J Puskar/AP)
Shares in carmakers Renault and Fiat Chrysler (FCA) both fell sharply on Thursday after Fiat Chrysler abandoned its $35bn merger offer (Gene J Puskar/AP)
Independent.ie Business Desk

Shares in carmakers Renault and Fiat Chrysler (FCA) both fell sharply on Thursday after Fiat Chrysler abandoned its $35bn (€31bn) merger offer.

Renault shares slumped 7pc, while Fiat's shares fell around 3pc in early trading.

"With FCA pulling its merger offer, one has to wonder how much the French state is set on limiting Renault’s strategic and valuation opportunities despite having only a 15pc stake," analysts at brokerage Jefferies wrote in a note.

"We expect both shares to react negatively but see FCA having wider strategic options and Renault shares more downside risk near-term."

Reuters

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