Fiat Chrysler drops bid for Renault

(Image credit: Marco Bertorello/AFP/Getty Images)

Fiat Chrysler dropped its $35 billion-plus offer to merge with rival French automaker Renault late Wednesday, only 10 days after the offer was made public. Fiat Chrysler blamed French politicians. France, which holds a 15 percent stake in Renault, said it had engaged with Fiat Chrysler in good faith but couldn't back a deal not supported by Renault's Japanese partner Nissan. The combined company would have been the world's third-largest automaker, after Toyota and Volkswagen.

"It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully," Fiat Chrysler said in a statement. Renault's shares dropped sharply Thursday.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.