for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Autos

PSA's shares rise as Fiat Chrysler withdraws merger offer for Renault

A PSA Group logo is seen behind a car displayed during French carmaker's news conference as they announce the company's 2018 results at their headquarters in Rueil-Malmaison, near Paris, France, February 26, 2019. REUTERS/Christian Hartmann

PARIS (Reuters) - Shares in Peugeot-carmaker PSA rose on Thursday, as analysts examined the possibility that Fiat Chrysler (FCA) might turn back to PSA after FCA withdraw a merger offer for Renault.

PSA shares were up 1.5% by 0740 GMT, in sharp contrast to Renault whose shares slumped 6.6% while FCA’s shares also fell in Milan. French state bank BPIfrance has a 12.2% stake in PSA’s share capital.

“Both parties have acknowledged the need for scale or M&A and may pursue other opportunities. If Nissan was an obstacle (to an FCA-Renault deal) PSA-FCA discussions could resume,” wrote brokerage Jefferies.

Reporting by Sudip Kar-Gupta; Editing by Mark Potter

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up