Reports have surfaced indicating that Hyundai is interested in acquiring Fiat Chrysler Automobiles (FCA) in a deal which would make it to the world’s largest carmaker.
An analyst from Eugene Investment & Securities, Lee Jae-il, told The Korea Herald that Hyundai could benefit greatly from purchasing FCA and help it to expand its operations throughout the United States and Europe. Last year, the two companies built a combined 11.5 million vehicles.
“Hyundai is denying the merger, but the need to acquire a company is higher than ever due to the crisis in the Chinese and US markets. The possibility of Chinese automaker Great Wall Motors acquiring Jeep has been suggested, and Hyundai Motor has also surfaced as a possible buyer,” Jae-il said.
Talk about a potential relationship between Hyundai and FCA first emerged last month when it was reported that Sergio Marchionne was actively seeking a merger with a large Asian car manufacturer. Such speculation comes not long after China’s Great Wall Motor said it was interested in purchasing the Jeep brand.
Analysts believe it would cost Hyundai approximately $9.83 billion to acquire FCA. If, however, it wanted to purchase the automaker without Maserati or parts manufacturer Magneti Marelli, the deal could cost around $4.95 billion.
However, not everyone is convinced such a move would be a good decision for Hyundai.
“Hyundai will face more obstacles if it buys the FCA as a whole. Fiat mainly produces small cars, which overlaps with vehicles made by Kia Motors in the A, B, and C-segments,” an industry insider said.
PHOTO GALLERY
 in a deal which would make it to …){kind=link}
Comments
Post a Comment