FCA withdrew

In addition, the collapse of the deal could exacerbate the frustration of investors in France, a country with a long history of intervention in the conduct of business companies.

“After FCA withdrew its merger proposal, there is no choice but to ask how determined France is to limit Renault’s opportunities in terms of strategy and market value, even though the French government does not exceed 15 percent,” analysts at Jefferies wrote in an update For investors.

However, the French government is under pressure from the French public to take a tough stance, because the merger was held against the background of public outrage in France over the dismissal of 1,044 employees at General Electric, which promised to avoid layoffs after acquiring French company Alstom in 2015. .

The failure of the merger deal will also worsen the political tension between France and Italy.

“When politicians try to intervene in economic matters, it does not always help, I will not elaborate, if FCA withdrew its offer because it did not recognize an economic advantage or any other kind of advantage,” said Deputy Prime Minister and Leader of the Five-Star Party Luigi Di Mayo, in an interview with Italian state radio.

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“There was agreement on three of the four conditions, and what was left to be achieved was Nissan’s clear support,” Mr. Mister told her.

French Budget Minister Gerald Dermanin expressed the hope that the door “has not been closed” on the possibility of a deal, adding that Paris would be happy to reexamine any new proposal on its part by FCA.

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