France's PSA Group confirms merger talks with Fiat-Chrysler

Source: Xinhua | 2019-10-31

Leading French car manufacturer PSA Group on Wednesday confirmed that it was negotiating a possible merger with Italian-U.S. auto giant Fiat-Chrysler Automobiles (FCA).
"Following recent reports on a possible business combination between Groupe PSA and FCA Group, Groupe PSA confirms there are ongoing discussions aiming at creating one of the world's leading automotive Groups," the French company said on its official website.
Earlier this year, Fiat-Chrysler had proposed a 50-50 merger deal to Renault, France's second largest car maker. Had the deal been followed through, it would have created the world's third largest automaker.
However, the negotiations were broken off, with the parties citing unfavorable political conditions in France.
PSA's board is expected to meet on Wednesday to discuss conditions for the deal with FCA, local media reported.
The French state owns 14 percent of PSA Group, which produces well-known brands like Peugeot, Citroen and DS.
Although the deal is still in the early stage and not guaranteed to be concluded, PSA's stocks were up 5.6 percent to 26.31 euros (29.23 U.S. dollars) at 1246 GMT on Wednesday.