Hyundai has been reported to be making a bid for taking over FCA (Fiat Chrysler Automobiles) with the departure of chief executive Sergio Marchionne nears. According to a report emerged on Asia Times, its sources have said that Hyundai will trigger a bid in a few months before the Italian-American corporation conducts shareholders’ meeting in May 2019 as Marchionne steps down from his position.
FCA’s shares are believed to take a downward curve this time around and thus its overall value will be lowered. It makes for a perfect scenario as Hyundai could pounce on the opportunity given. Paul Singer, principal of Elliott Management, is the key figure in launching this bid and the activist shareholder has a stake worth $1 billion (Rs. 6,861 crore estimated) in Hyundai.
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Later, in an interest to acquire Alfa Romeo, a merger has been expected out of FCA and Volkswagen but it faced a similar fate. More recently, a possible merger with a Chinese car maker failed to materialise as it could have been blocked by US President Donald Trump via Committee On Foreign Investment.
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