Italy open to picking stake in Renault-FCA

Rome: Italy would be open to taking a stake in the proposed merger between Renault SA and Fiat Chrysler Automobiles NV, as long as the deal triggers economic benefits for the country, according to a government undersecretary.

“Our government is open to investment, provided that this brings a positive impact in terms of economic growth and jobs for our citizens,” Michele Geraci of the economic development ministry said when asked about Italy investing in the possible new entity.

Geraci noted that the merger could see the French state’s stake shrink roughly “from 15 per cent to 7.5 per cent”, adding that “in principle that is not against our view.”

France will back the proposed merger, as long as it offers the state a range of guarantees on jobs, a board seat and local headquarters, Finance Minister Bruno Le Maire said.