Stellantis denies merger plan with Renault
Stellantis responds to speculation
Stellantis Chairman John Elkann has refuted rumors of the carmaker’s potential merger plans, particularly in connection with French automaker Renault. Speculation about a French-led tie-up between the two companies has led to Elkann’s denial of any such plans.
Elkann’s statement
Elkann emphasized that Stellantis, the third-largest carmaker globally in terms of sales, is solely focused on executing its long-term business strategy. He made it clear that no merger operations with other manufacturers are being considered at this time.
Renault’s situation
Renault, having exited the Russian market, has faced challenges, and speculation about its future intensified following the cancellation of IPO plans for its EV and software unit Ampere. Despite a financial recovery in recent years, the company’s market cap remains relatively low.
Renault in the spotlight
Renault, which has been seen as a potential M&A target, saw its shares rise after rumors of a potential merger with Stellantis emerged. The French government, a shareholder in both Renault and Stellantis, has been reportedly studying plans for a merger between the two groups.
Stellantis’s stance
Stellantis, following its formation from the merger between France’s PSA and Fiat Chrysler, has expressed its readiness for any kind of consolidation. Despite this, analysts have raised questions about the rationale behind a potential Stellantis-Renault merger, highlighting concerns about excess capacity in Europe and potential antitrust obstacles.
Financial implications
Stellantis is one of the most profitable groups in the automotive industry, with a market cap of over 85 billion euros. On the other hand, Renault’s market cap is significantly lower, hovering around 10 billion euros, despite its financial recovery.
Final thoughts
Amid ongoing speculation and market movements, the situation between Stellantis and Renault continues to be closely monitored, with investors and stakeholders eagerly awaiting further developments in the automotive industry.
