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A closer look at the potential Fiat Chrysler-Renault merger

Fiat Chrysler Automobiles NV's proposed merger with Renault SA would create the third-largest global automaker with a significant presence in both the North American and European markets.

FCA proposed May 27 that it and Renault each hold 50% of the combined entity, with shareholders of both companies receiving an equivalent equity stake in the yet-to-be-named company.

If the all-share deal were to come to fruition, it would create the world's third-largest global automaker trailing Toyota Motor Corp. and Volkswagen AG. The new company would have annual revenue of nearly €170 billion and net profit of more than €8 billion. The company would also be heavily exposed to North America and Europe, the biggest geographic markets for FCA and Renault respectively.

S&P Global Market Intelligence takes a closer look at the potential merged company by highlighting some key metrics.

Revenue

FCA's 2018 revenue grew 4.4% to €110.21 billion from €105.57 billion in 2017. That is the first time the company has posted revenue growth on an annual basis since 2015. Renault's 2018 revenue decreased 2.3% to €57.42 billion from €58.77 billion a year ago but its revenue grew each year between 2014 and 2017.

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Share price

FCA shares have lost about 33.2% of their market value over the past 12 months, while Renault shares have lost 33.7% of their market value over the same time period.

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Revenue by region

FCA has a strong presence in North America, while Renault has a strong presence in Europe.

North America made up 68.3% of FCA's revenue in 2018, while Europe, the Middle East and Africa generated 21.5% of the total.

Meanwhile, about 63.9% of Renault's total revenue in 2018 came from Europe, while 8.2% of the company's total sales came from the Americas.

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