Fiat Chrysler, Renault in Talks for Wide-Ranging Tie-Up --Update

By Liz Hoffman, Christina Rogers and Cara Lombardo 

Fiat Chrysler Automobiles NV and Renault SA are in talks for a wide-ranging tie-up that could include joining large portions of their businesses, according to people familiar with the matter, a move that could reshape the European auto industry.

While many details and the financial contours of any transaction couldn't be learned, it could be substantial: Fiat Chrysler, which trades in New York and Milan, has a market value of $20 billion. Paris-listed Renault is worth about $17 billion.

There is no guarantee the parties will reach an agreement, but if they do so it could come soon, some of the people said.

That Renault and Fiat Chrysler, considered crown jewels in France and Italy respectively, would seek a major overhaul shows the challenges facing global auto makers. As demand slows for new cars, the advantages of global scale are starting to outweigh the national pride and other factors that have kept homegrown car makers across Europe independent.

--Nick Kostov, Eric Sylvers and Ben Dummett contributed to this article.

Write to Liz Hoffman at [e-mail], Christina Rogers at [e-mail] and Cara Lombardo at [e-mail]

(END) Dow Jones Newswires

May 25, 2019 14:22 ET (18:22 GMT)

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