On Sunday, the Italian daily Il Messaggero reported that the French government, being the largest shareholder in Renault and holding a stake in Stellantis (NYSE:STLA), was reportedly examining proposals for a potential merger between the two automotive groups.
Stellantis Chairman John Elkann refuted the rumors Monday morning, specifically addressing press speculations about a potential collaboration with France’s Renault.
Elkann emphasized that Stellantis, currently the world's third-largest carmaker by sales, is committed to the implementation of its long-term business strategy.
He stated unequivocally, "There is no plan under consideration regarding merger operations with other manufacturers."
Having withdrawn from the Russian market, and scaling back its global collaboration with Nissan, Renault was seen by many as a potential M&A target.
Speculation heightened following a slowdown in the electric vehicle market last week, prompting the cancellation of IPO plans for Stellantis' electric vehicle and software unit, Ampere.
Citi reiterated a buy rating on Stellantis following Elkann’s remarks, agreeing that “a Renault/Stellantis merger makes strategic sense,” but clarifying that even though “industry consolidation is likely through the BEV transition, it is not clear to us why a Renault-STLA merger should be the first one.”
Shares of STLA are down 1.78% in pre-market trading Monday morning.