French Finance Minister Bruno le Maire said on Thursday that the government in Paris "openly welcomed" the merger proposal between Renault Groupe and Fiat Chrysler Automobiles (FCA) and that it "worked constructively with all stakeholders." An agreement between the two auto industry giants was reached "on three out of four conditions" and an explicit support from Renault's alliance partner Nissan was still missing, le Maire said in a statement, adding that the government wanted additional five days for negotiations before FCA withdrew the merger proposal.
Although earlier reports indicated that the merger talks failed because of Nissan, FCA claimed that "it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully." FCA also pointed out that Nissan representatives were constructively engaged in all stages of the merger talks.
Meanwhile, two Nissan executives on the Renault board both abstained from the merger vote. Nissan's current contract with Renault allows it to name an additional member to the French company's board. Additionally, the Japanese company would be able to buy a larger stake in Renault, than its current 15%, if the government in Paris intervenes in the company's policies.
