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FCA Turned Down PSA Merger Offer

By Drew Dowdell

· 2,208 views

  • ...company bosses are no longer talking.

The rumors that PSA and FCA may merge can be put to bed now.  Sources familiar with the discussion told the Wall Street Journal that executives from the respective companies are no longer in talks.  FCA was reticent about the idea because it would increase the companies reliance on the struggling European market, and the Agnelli family, who has a controlling stake in FCA, was not interested in a deal that was paid for with PSA stock. PSA would need to use equity to pay for FCA because they are still digesting their acquisition of Opel from General Motors. 

Had they merged, the combined company would produce over 9 million vehicles per year, putting them on a playing field with Volkswagen and Nissan-Renault.  It would also give PSA a much needed foothold into the U.S. market for their planned 2026 re-entry. 

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    Rising Star

    riviera74

    Members

    Well that is lame.  I wonder who else could merge with FCA.

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    • Mentor

    smk4565

    Members

    One day the Chinese will own both these companies anyway.

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    • Agree 1
    Grand Master

    G. David Felt

    Members

    Right now the only way either company will survive is when they are bought out with cash that makes the legacy families money they can then walk away from. They have no real interest in making a profitable company or quality as all you have to do is look at their current financial mess.

    Chinese ownership is the future for them.

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    • Grand Master

    Drew Dowdell

    Editor-in-Chief
    18 hours ago, riviera74 said:

    Well that is lame.  I wonder who else could merge with FCA.

    Land Rover - Jaguar  or Mazda or even Hyundai

    The thing is, I think they've already turned down those options. 

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    • loki

    In Hibernation
    (edited)

    a new conglomerate of Saturn Hummer Olds Mercury plymoth(pontiac) AMC - SHAMPO, they will bu(r)y FCA into the fold. ;)

    Edited by loki

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    • Haha 1

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