Fiat Chrysler has withdrawn an offer for a merger-of-equals with Groupe Renault, and people close to the negotiations between the two companies are pointing the finger at what they described as meddling by the French government.
was arrested last November on financial corruption charges, with a number of observers questioning whether that was actually the result of Nissan's desire to gain more control in the three-way partnership.
If anything, said the person closely briefed on the negotiations who spoke with CNBC, Nissan had expressed interest in the deal and the potential benefits to the Japanese automaker. In its original merger proposal, Fiat Chrysler outlined 5 billion euros in potential synergies, 1 billion of that set to accrue to Nissan and Mitsubishi.
"There was a clear, growing realization that this is not an environment in which the proposal can come together," the Fiat Chrysler source said, noting the irony that there remains "a very cordial relationship" between the two companies, and, in particular, between CEOs Manley and Senard. Renault's 66-year-old chief executive is now finding himself "in a very difficult position," said the industry veteran who has been linked to several of the carmakers.
"It's unfortunate this proposal failed so quickly," said Karl Brauer, an analyst with Kelley Blue Book, "though it's better than having it drag on for weeks or months and then fail.
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