PARIS (Reuters) – Fiat Chrysler is discussing a Renault special dividend and stronger job guarantees in a bid to persuade the French government to back its proposed merger between the carmakers, sources close to the discussions said.
The improved offer, if formalized and accepted, would also see the combined company’s operations headquartered in France and the French state granted a seat on its board, two people with knowledge of the matter told Reuters on Sunday.
FCA spokeswoman Shawn Morgan declined to comment. The French government, Renault’s biggest shareholder with a 15 percent stake, also declined to comment. A Renault spokesman did not return calls and messages seeking comment.
Italian-American FCA is engaged in intensive discussions with Renault and the French government over the $35 billion merger proposal it pitched last Monday to create the world’s third-biggest carmaker.
The concessions being discussed are not definitive and depend on other aspects of an emerging compromise deal, both sources cautioned.
They nonetheless increase the chances that the merger plan will be approved by Renault’s board, on which the French state has two seats. The board meets again on Tuesday.