June 6, 2019 / 8:03 AM / 5 months ago

PSA's shares rise as Fiat Chrysler withdraws merger offer for Renault

A PSA Group logo is seen behind a car displayed during French carmaker's news conference as they announce the company's 2018 results at their headquarters in Rueil-Malmaison, near Paris, France, February 26, 2019. REUTERS/Christian Hartmann

PARIS (Reuters) - Shares in Peugeot-carmaker PSA rose on Thursday, as analysts examined the possibility that Fiat Chrysler (FCA) might turn back to PSA after FCA withdraw a merger offer for Renault.

PSA shares were up 1.5% by 0740 GMT, in sharp contrast to Renault whose shares slumped 6.6% while FCA’s shares also fell in Milan. French state bank BPIfrance has a 12.2% stake in PSA’s share capital.

“Both parties have acknowledged the need for scale or M&A and may pursue other opportunities. If Nissan was an obstacle (to an FCA-Renault deal) PSA-FCA discussions could resume,” wrote brokerage Jefferies.

Reporting by Sudip Kar-Gupta; Editing by Mark Potter

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