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The deal can create the third largest automaker in the world in terms of production.
Fiat shares gained about 19% at the start of trading in Milan, while Renault shares rose by 16%.
Fiat said the merged business would be 50% owned by FCA shareholders and another 50% would went to Groupe Renault shareholders. Independent members will occupy majority of seats on the board of directors.
Nissan, 43.4% of which is owned by Renault, will be asked to appoint one director to the 11-member board of directors of the new merged company.
Before closing the deal, FCA shareholders will also receive dividends of € 2.5 billion in order to "reduce inequality in the market value of the shares."
The expected synergy from the potential merger is more than € 5 billion per year, the FCA said.
If the merger takes place, it will create a carmaker with a total value of $ 37 billion, with 8.7 million car sales per year and a strong presence in key regions and market segments.
The parent company is expected to be incorporated in the Netherlands. Its shares will be traded on the stock exchanges in Milan, Paris and New York.
The merger requires approval of the boards of directors of both automakers.
Last year, Fiat Chrysler sold 4.85 million vehicles worldwide, most of them - in North America. Renault sold 3.81 million cars in 2018, with most of its business in Europe.
source: washingtonpost.com
Fiat shares gained about 19% at the start of trading in Milan, while Renault shares rose by 16%.
Fiat said the merged business would be 50% owned by FCA shareholders and another 50% would went to Groupe Renault shareholders. Independent members will occupy majority of seats on the board of directors.
Nissan, 43.4% of which is owned by Renault, will be asked to appoint one director to the 11-member board of directors of the new merged company.
Before closing the deal, FCA shareholders will also receive dividends of € 2.5 billion in order to "reduce inequality in the market value of the shares."
The expected synergy from the potential merger is more than € 5 billion per year, the FCA said.
If the merger takes place, it will create a carmaker with a total value of $ 37 billion, with 8.7 million car sales per year and a strong presence in key regions and market segments.
The parent company is expected to be incorporated in the Netherlands. Its shares will be traded on the stock exchanges in Milan, Paris and New York.
The merger requires approval of the boards of directors of both automakers.
Last year, Fiat Chrysler sold 4.85 million vehicles worldwide, most of them - in North America. Renault sold 3.81 million cars in 2018, with most of its business in Europe.
source: washingtonpost.com
