The cancellation of the proposed mega merger between Italian-American car giant Fiat Chrysler and French car-maker Renault, which would have created the world's third-biggest automaker, sent shock waves through international stock markets, and leaves the issue of the merger of the two auto-makers and their future unresolved.
Fiat's board announced that it is withdrawing the merger offer with immediate effect.
"We remain open to any possible industrial integration, but with the necessary calm and without haste so as to guarantee the industrial interests of Renault and the interests of France," said France's Economy and Finance Minister Bruno Le Maire.
Fiat Chrysler's decision to end talks was sudden and one-sided, while the French state is a major shareholder in Renault, with a 15% stake.
"One thing is for sure. Fiat is no longer going to sit at the table with Renault. Renault has shown its interest to enter the American market. Fiat made every effort to get into the Asian market, something which is missing for the company, and this is one of the biggest problems up to now. Above all, we are moving towards a world where the sale of 4-5 million cars, as is the case with Renault and Fiat, is no longer enough to guarantee the future. In my opinion, the most natural partner for Fiat was always General Motors," said Italian journalist Paolo Griseri.
Only Renault would have participated in a merger with Fiat and not Nissan and Mitsubishi in their already existing alliance.
The merger of the two automotive giants would have created a group worth more than 30 billion euros, with annual car sales of around 8.7 million vehicles each year.