The Italian-American automobile company, Fiat Chrysler said that the company has relinquished $35 billion offer for Renault, accusing French Politics of scuttling which would have been a landmark deal to create the worlds third-biggest automaker, as reported by VC Circle.
An anonymous source close to Renault said that said Fiat Chrysler made the move after France sought to delay a decision on the deal in order to win the support of Nissan Motor Co, Renaults Japanese alliance partner, according to the new reports.
The French government had asked Nissan to fortify amalgamation but the Japanese automobile manufacturer refused to participate in the transaction.
The French government, which owns a 15 per cent stake in Renault, had also pushed Fiat Chrysler for guarantees that France would not lose jobs, and for a dividend to be paid to Renault shareholders, including the government, anonymous sources aware of the talks said, reported by the aforementioned news.
It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully, Fiat Chrysler said in a statement issued early Thursday from London
The original business proposal, which had been made by Fiat Chrysler, did not consist any special dividend to Renault shareholders.