Fox Business Briefs: Fiat Chrysler withdraws $40 billion merger bid for French automaker Renault saying the deal collapsed due to the political climate in France; Amazon says it will begin using drones to deliver packages and Uber will begin offering helicopter rides in New York City.
Fiat Chrysler and Peugeot owner PSA Group are in talks to form a $50 billion auto behemoth, the Wall Street Journal reported, citing people familiar with the matter.
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Fiat Chrysler shares spiked on the news.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FCAU | FIAT CHRYSLER AUTOMOBILES N.V. | 14.14 | +0.91 | +6.88% |
The proposed all-stock deal would make Peugeot chief Carlos Tavares head of the newly formed company while Fiat Chrysler Chairman John Elkann would keep his role, the WSJ said.
A deal would give Peugeot a presence in the U.S. market, which it exited in 1991. Combined, the two automakers sold about 3.5 million vehicles last year. By comparison, General Motors sold 2.95 million vehicles while Ford sold 2.5 million vehicles.
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This isn’t the first time the two companies have been linked. In April, Robert Peugeot, president of the Peugeot family’s holding company, said a deal with Fiat was an option.
“With them, as with others, the planets could be aligned,” he was reported as saying, according to Reuters.
Fiat Chrysler shares are down 8.5 percent this year while Peugeot has risen 33.3 percent.
