FCA withdraws its offer to merge with Renault

Fiat Chrysler has withdrawn its merger offer for Renault, the Wall Street Journal and Bloomberg News reported on Wednesday.

This is a developing story. Check back for further details.

Earlier, Reuters reported that Fiat Chrysler had reached a tentative agreement with France on the terms of its proposed merger with Renault, two sources said, as the French carmaker’s board met to consider the bid late on Wednesday.

But Renault’s directors meeting at the company’s Boulogne-Billancourt headquarters outside Paris had not decided whether to approve a memorandum of understanding or framework agreement that would begin the long process of a full merger.

The French state, which owns 15% of Renault, had been seeking more influence over the merged company, firmer job guarantees and improved terms for Renault shareholders in return for blessing the $35 billion tie-up.

Renault, FCA and the French government all declined to comment on the ongoing board discussions.