Fiat Chrysler withdraws Renault merger proposal

June 5 (UPI) -- Fiat Chrysler Automobiles withdrew its offer to merge with Groupe Renault on Thursday after the French automaker said it was unable to make a decision on the proposal.

Renault's board was unable to vote on the proposed 50-50 merger during an early Thursday meeting because the French government, a shareholder, requested a postponement.

FCA cited this delay as the reason for its withdrawal.

"It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully," the Italian automaker said.

FCA made the proposal May 27, saying the merger would generate $5.6 billion in savings without the closure of any plants.

The combined annual revenues of the companies was expected to be nearly $190 billion with a net profit of more than $8.9 billion based on 2018 results.