Fiat Chrysler has taken away its offer of a 50/50 merger with Renault because the French government wanted to gain Nissan’s full approval.
Nissan has a formal platform, technology and capital alliance with Renault. The French government owns 15% of Renault, and had sought a number of guarantees in order to give its go ahead to the merger plan.
It successfully negotiated safeguards for French employees, and retaining its representation on the merged company’s board, but couldn’t convince Nissan approve the merger.
At a Renault board meeting to discuss the merger, Nissan abstained from voting. The French government pushed Renault to ask for more time as it sought to gain Nissan’s approval.
In the end, Fiat Chrysler decided to withdraw its bid.