Fiat Chrysler Automobiles withdrew its offer to merge with French automaker Renault over Nissan’s refusal on Wednesday to back the proposed deal, the Wall Street Journal first reported.
The two automakers made public their talks to merge in May after months of negotiations. Renault’s board of directors met in Paris on Tuesday and Wednesday to discuss the 50/50 merger, although talks reportedly stalled because Nissan’s two representatives to the combined automaker’s board planned to abstain.
The French government was opposed to an FCA and Renault merger that would have ended the Renault-Nissan alliance.
FCA later issued a terse statement over the dissolution of the merger and said that it will “withdraw with immediate effect its merger proposal made to Groupe Renault”
“FCA remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties,” the American automaker said. “However it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.”
This story is developing and will be updated.