By Stuart Burns
It is not often that the world’s largest carmakers engage in mergers and acquisitions among themselves.
Fiat Chrysler (NYSE:FCAU) and Renault Nissan (OTC:RNSDF) announced a $35-billion plan to merge back in May 2019. The merger would have created the third-biggest carmaker, behind Volkswagen (OTCPK:VWAGY) and Toyota (NYSE:TM).
But within 10 days of the announcement, FCA pulled out and it came to nothing.
Take two: Fiat Chrysler, PSA to merge
Now, still keen for a tie-up, FCA has announced it will merge with the French group PSA (OTCPK:PEUGF).
PSA is the owner of brands like Peugeot, Citroen, Vauxhall, and DS. The deal, valued at $50 billion, would form a 50/50 partnership with a turnover of some €170 billion ($200 billion) a year and annual production of some 8.7 million units.
As such, the deal would put them, again, third. By other measures, they would