Proposed FCA - Renault merger could result in governance dispute for Board representation

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Fiat Chrysler unveiled plans for a €33 billion merger with French automaker Renault. The proposed deal would make the new combined company the third largest automaker in the world behind only VW and Toyota. The Financial Times reported that Fiat Chrysler’s Chair John Elkann is expected to retain the Chair role in the new company, while Renault’s current Chair Jean-Dominique Senard would take on the role of chief executive. Both the French government and Nissan, which would both hold a 7.5 percent stake in the new company, are expected to demand a seat on the board.