Investing.com – Fiat Chrysler Automobiles (NYSE:) shares jumped as much as 8.8% Tuesday afternoon after The Wall Street Journal said the company is in talks for a possible merger with French automaker Peugeot.
Shares were up 7.6% at 2:45 PM ET (18:45 GMT).
- There is no deal yet as the two sides are trying to figure out the terms. One option is for an all-share deal. It's also not clear how the Trump Administration would view such a merger.
A deal between the two would create a company with sales of as much as $50 billion a year, the Journal said. It learned of the talks from multiple sources familiar with the negotiations.
Fiat Chrysler had offered this past spring to merge with Renault (PA:), Peugeot's French rival. But it pulled the offer in June, saying "political conditions in France do not currently exist for such a combination to proceed successfully.” The French government is Renault's biggest shareholder. And it has an ongoing partnership with Japanese auto giant Nissan (OTC:).
