Fiat Chrysler has withdrawn its $35 billion merger proposal for Renault, sending the shares of the carmakers to fall sharply on Thursday.
French carmaker's shares slumped 7 per cent, while Fiat's shares fell around 3 per cent during early trading.
"It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully," Fiat Chrysler said in a statement.
But it said it remained "firmly convinced of the compelling, transformational rationale" of the proposal, the terms of which were "carefully balanced to deliver substantial benefits to all parties".
Indian state shuts some Domino's, Pizza Hut outlets, citing hygiene lapses
ADNOC's XRG advances global gas strategy with Venezuela entry
Iger, Kushner purchasing Lakers for record $12.5 billion
Chair of India's Tata to step down after tension with controlling charity
Emirates offers flyers to Dubai unlimited free date changes
