A case study: The merger between Fiat Chrysler Automobiles and Groupe Renault

• Autor(a) principal: Manteigas, Clarisse Isabel Manso Ribeiro Amador
• Data de Publicação: 2020
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/21228
• topic: Acquisition; Board behavior; Corporate finance; Merger; Aquisições; Reações dos órgãos de gestão; Finanças empresariais; Fusões

On the 27th of May of 2019, Fiat Chrysler Automobiles suggested a Merger Deal to Groupe Renault. After the deal was acknowledged by Renault, the necessary conditions for it to be successful were stipulated, the announcement of this new merger was made public, the markets in which the shares from the combined firm would be traded were defined as well as the share issue price. However, even with a favourable financial situation from both companies and a well-elaborated plan, the Merger between FCA and Renault failed. The present study analyses the conditions of this merger deal, with the goal of exploring it and understanding why this Merger failed. Therefore, after a literature review and having chosen a qualitative methodology, a PESTLE and Porter analysis were carried out; a group of Financial Key Performance Indicators was defined and calculated; the history of both companies was covered; and the chronology of the merger deal was clarified. Afterwards, a conclusion was achieved: this is the case of a failed Merger probably due to political conditions, which emphasized that having an amazing Deal from the financial perspective may not be enough for it to be successful. The present case study also highlights the importance of studying Key Performance Indicators to analyse the financial situation of a company, and may be used to show to students the importance of analysing the conditions surrounding a Merger Deal - not only the financial ones, but also the macro economical ones.