skip to Main Content
enquiries@thearmchairtrader.com

Sign up for our Free Daily Digest newsletter: Actionable insight every morning, designed for the self-directed investor. Find out more

The Fiat Chrysler/Renault deal

So after all the hype and initial cautious approval from France and Italy it seems that the proposed merger between Fiat Chrysler and Renault is dead.

The French government wanted the deal to get support from Nissan and because it didn’t get it, it rejected the merger.

The deal would have made the group the world’s third largest car manufacturer behind VW and Toyota, but its abandonment means that it’ll be back to the drawing board for all concerned as they all face falling car sales and higher costs resulting from tightening regulation and increased R&D spend for electric vehicles.

Nissan is hardly in a position of strength itself, so let’s hope that its refusal to support the deal was the right one and won’t contribute to its terminal decline.

This move could yet prove to be ironic because if Fiat Chrysler can’t merge with other manufacturers and has rising costs, it will have to make big cuts to survive – cuts that apparently wouldn’t have been made had the merger gone ahead.

Arcadia’s day of judgement

The other thing I wanted to highlight today was the postponement of the creditor vote on Arcadia’s CVAs.

Basically, the vote was postponed until next Wednesday because it wasn’t looking like the creditors would play ball.

Arcadia chief Philip Green needs at least 75% approval from creditors for ALL SEVEN of his proposed CVAs for Arcadia to survive, so you can see why he wanted more time to talk the doubters around.

If Big Phil doesn’t get his way for CVAs, we could see a massive Topshop, Topman, Miss Selfridge, Evans, Wallis and Dorothy Perkins-shaped hole on the high street so there is a LOT riding on this.

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Peter Watson

Peter Watson

Peter Watson founded Seiha Consulting, a career transition consultancy, after working in HR and four recruitment agencies. He was also a stockbroker for 13 years in London and Tokyo, advising some of the world’s biggest financial institutions on European and Japanese stock market investment. He started writing the Daily (previously known as “Watson’s WIFI”) to help candidates prepare for interviews – but soon found that many others wanted to read it as well!

Comments

Back To Top