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Hyundai quick to quell FCA takeover rumors

Hyundai quick to quell FCA takeover rumors image

AutoIndustriya.com / Manufacturer Press | July 03, 2018 10:39

Hyundai denies takeover but neither confirms nor denies possible merger

Only yesterday, outfits caught wind of Korean manufacturer Hyundai looking into acquiring a majority share in Fiat Chrysler Automobiles. Such a move would, of course, give them a controlling hand in the Italian-American company, but this was quickly set straight by the Asian brand. Sort of.

With FCA looking at an impending CEO change (Sergio Marchionne is set to step down in April of next year), stock prices may experience some form of movement following the transition. Should they go down, and with Hyundai CEO Chung Mong-Koo allegedly (according to unnamed sources) keeping a close watch, the belief is that the acquisition will be made during that time.

This was quickly addressed by Hyundai Motor America corporate spokesperson Michael Stewart, though. “That rumor is totally groundless,” Stewart said, thereby putting to rest the takeover theory, at least for now. Announcing even the possibility of a takeover could affect stocks to the tune of retaining their prices, and this could of course affect Hyundai's, or any other company's plans of acquisition.

These being said, a possible partnership is something that was left in the wind by Hyundai. A merger would not be all that bad, either. If Hyundai and FCA indeed come to a merger, they could quickly become the biggest Asian-European powerhouse after the Nissan-Renault merge.

With this new possiblity coming to light, more news involving Hyundai and FCA could still keep blips on the industry's radar.