The Hyundai Motor Group denied rumors that it might acquire FCA, complaining that some in the financial industry are spreading groundless rumors.
The rumors have been spread by multiple news outlets since late last month. For example, U.S.-based M&A information provider Capitol Intelligence Group said on June 19 that Hyundai would make a proposal before May next year to acquire FCA.
In fact, Capitol Intelligence Group said in August last year that FCA was hoping to merge with Hyundai. Hyundai denied the report at that time and the same thing is happening again. Reasons for Hyundai’s disinterest in FCA are already well known. According to Hyundai, FCA has mass-market car brands such as Fiat and Chrysler along with SUV specialist Jeep and sports car brands like Maserati and Alfa Romeo but it does not have any future automobile technology for electric vehicles, hydrogen electric vehicles, self-driving cars and connected cars. Besides, Ferrari already left FCA when it was listed on the New York Stock Exchange in 2015.
According to some market participants, a merger between them is attractive for Hyundai because it can become the largest automaker in the world and diversify its portfolio through the process. The continuous rumors are also related to a rumor that the merger is being demanded by Elliott Management, which called for Hyundai to reform its governance structure for a higher shareholder value.