Investing.com - Fiat Chrysler raced ahead Wednesday, driving autos higher as traders cheered reports that Renault could soon make a bid for the automaker if it is able to pull off a merger with Nissan.
Renault (PA:RENA) reportedly is set to restart merger talks with Nissan within 12 months, the Financial Times reported. A Renault, Fiat and Nissan merger would create an auto giant that would seek to dethrone leaders Toyota and Volkswagen (DE:VOWG_p). Fiat Chrysler Automobiles (NYSE:FCAU) rose 2.6%.
It is not the first time that Renault has flirted with the idea of making a bid for Fiat Chrysler. Former Renault CEO Carlos Ghosn held talks with the Italian-American multinational before he was arrested in Japan on financial misconduct charges.
Fiat Chrysler Chairman John Elkann is reportedly open to a potential partnership or merger in a bid to inject some oomph into the company.
Renault, however, is not the only automaker interested in Fiat.
In an interview earlier this month, Robert Peugeot, president of Peugeot family holding company FFP, said that Fiat Chrysler could possibly be an M&A candidate for the French automaker.
Analysts have backed a potential deal, citing the attractive value of Fiat.
"We view the interest in FCAU as largely a reflection of its attractive valuation and think it has strong sales momentum relative to peers with the recent introduction of the Jeep Gladiator, Ram pickups and the Alfa Romeo Stelvio, and like its low China exposure (only 2% of revenue)," said CFRA, an independent research provider.