Source: REUTERS
SOCHAUX, France/PARIS, Oct 3 (Reuters) – Rumours of a merger between Stellantis STLAM.MI and Renault RENA.PA are “pure speculation,” said Stellantis CEO Carlos Tavares on Thursday as he visited one of the French-Italian automaker’s hubs in eastern France.
Speaking at an event in Paris, Renault CEO Luca de Meo meanwhile declined to comment on what he described as “rumours”.
Italian newspaper Il Sole 24 Ore reported this week that talk of a tie-up has become more persistent, with economies of scale seen as a possible solution to managing the intense competition faced by traditional automakers.
Stellantis on Monday cut its 2024 profit forecast and warned it will burn through more cash than expected as it tries to revive its U.S. business.
Shares in Europe’s No. 2 automaker have tumbled more than 55% since March, the worst performance among European autos stocks, slashing 47 billion euros ($52 billion) off the company’s valuation.
Speculation about a Stellantis and Renault tie-up also arose early this year, with an Italian media report that the French government – which is Renault’s largest shareholder and also has a stake in Stellantis – was studying plans for a merger between the two groups.
Tavares and De Meo are both attending the Paris Motor Show opening on Oct. 14. Asked what he would discuss with Tavares at the event, De Meo replied: “I will greet him, as always”.
(Reporting by Gilles Guillaume and Florence Loeve; Writing by Makini Brice and Dominique Patton; Editing by Tassilo Hummel and Jan Harvey)
