FCA withdraws offer to merge with Renault

Fiat Chrysler Automobiles has formally withdrawn its offer to merge with Groupe Renault.

Only days after details of the $A50 billion merger were tabled, FCA informed of its intention to withdraw on Wednesday after Renault’s board of directors failed to reach a decision during a meeting that ran late into the evening.

Renault's board issued a press release that said it was "unable to take a decision due to the request expressed by the representatives of the French State to postpone the vote to a later Council”.

The French State owns 15 per cent of Renault and had reportedly been seeking more influence over the merged company, firmer job guarantees and improved terms for Renault shareholders.

When the French government requested a delay and Renault obliged, FCA pulled the pin.

“The Board of Fiat Chrysler Automobiles N.V. meeting this evening under the Chairmanship of John Elkann, has resolved to withdraw with immediate effect its merger proposal made to Groupe Renault,” FCA said in a statement.

“It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.

“FCA will continue to deliver on its commitments through the implementation of its independent strategy.”

The merger would have created the world's third-biggest automaker with combined sales of 8.7 million vehicles per year, and was intended to cut costs as the parties develop electric and autonomous vehicles.