Outside of financial jargon, the merger between Stellantis and Renault, creating what we’ll call Stellault, could result in several indirect challenges for the Italian automotive industry. The newly formed colossus would hold 17 brands and might lead to production redundancies and distribution challenges. This could impact the Italian automotive supply chain and increase dependence on the new entity. The potential merger might not significantly alter the shareholding, but it could lead to a significant concentration of production and market power in France, raising concerns for both the EU Antitrust and the French government.
The combined group would have 23 facilities in France, employing over 80,000 people, four times the number of facilities and twice the personnel of the former FCA in Italy. This concentration of market power could raise doubts about the envisioned alliance in the European Antitrust arena and unsettled the French government, especially in the midst of European elections. This might lead to concerns about the ideal conditions for synergies and potential competition issues, putting the French automotive industry at risk. The concentration of production in France and the potential consolidation of market power could raise concerns for both the EU Antitrust and the French government.
Therefore, the potential merger between Stellantis and Renault would require careful consideration from both regulatory and industrial perspectives.