It seems that Chinese interest has waned in acquiring Fiat Chrysler Automobiles [FCA] perhaps due to the complexities involved on both sides. However, interest now seems to have been generated from a neighbouring corner – South Korea.
And it’s no secret that there are cash-rich businesses in South Korea capable of raising the funds required for such an investment. One name that strongly has surfaced as a possible contender is Hyundai-Kia Motors.
The industry is ripe with rumours that Fiat Chrysler might have finally found a buyer. Hyundai-Kia executives are allegedly evaluating a takeover in a bid to become the world’s largest automaker by sales.
By acquiring all or part of FCA would give Hyundai-Kia access to more SUVs, crossovers, and hardcore pick-up trucks. Likewise, with the association, FCA could benefit from the hybrid and electric technology found in recent Hyundai-Kia models like the Niro and the Ioniq.
There’s no word yet on how much FCA is worth, or which parts of the business would fall under the new South Korean leadership. Hyundai has denied it’s getting ready to absorb FCA. Analysts and industry watcher think it would be the right move and win-win for both organisations.
“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,” says Korean analyst Lee Jae-il. Meanwhile, FCA hasn’t commented on the report yet. Historically, FCA has been surprisingly candid about potential acquisitions in the past.