Fiat Chrysler Automobiles (FCA) on Monday said that it has proposed a fifty-fifty merger deal with Renault Group.
The two automakers have been planning a merger to curb costs in producing vehicles and to pool resources for developing the next generation automobiles.
"The proposed combination would create a global automaker, preeminent in terms of revenue, volumes, profitability and technology, benefitting the companies’ respective shareholders and stakeholders," FCA said in a press release.
Meanwhile, Renault Group in a statement said its board of directors will discuss the FCA's bid.
According to FCA, the merged company may sell 8.7 million vehicles annually and can be a leader in several vehicle grades such as electric vehicles.
"On a simple aggregated basis of 2018 results, the combined company’s annual revenues would be nearly €170 billion ($190.3 billion) with operating profit of more than €10 billion ($11.2 billion) and net profit of more than €8 billion ($8.9 billion)," it added.
The company further said that the combined business could save €5 billion ($5.6 billion) annually.
Established in 1898, Renault Group, sold 3.9 million vehicles in 134 countries in 2018. The group owns Dacia, Renault Samsung Motors, Alpine and LADA brands.
FCA Group, which holds brands like Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, Ram and Maserati also sells vehicles in over 135 countries globally.
Italian Fiat Group and American Chrysler Group had merged, earlier in 2014 to form the FCA Group.
