Fiat Chrysler Withdraws Offer to Merge with French Automaker Renault

Fiat Chrysler says political conditions in France caused it to withdraw its offer to merge with French automaker Renault.

The company says its board made the decision at a meeting Wednesday evening. An FCA statement says it has become clear that the political conditions don't currently exist for the deal to proceed successfully.

FCA thanked Renault and its alliance partners Nissan and Mitsubishi for their constructive work on the proposal.

The company says it will deliver on its commitments with a strategy to remain independent.

Fiat Chrysler had proposed merging with Renault to create the world's third-biggest automaker, worth almost $40 billion.

The combined company would have produced some 8.7 million vehicles a year, more than General Motors and trailing only Volkswagen and Toyota.