Fiat Chrysler withdraws bid for Renault

Fiat Chrysler has withdrawn its merger proposal for French carmaker Renault, the Italian-American firm has said.

The announcement followed a failed attempt by Renault board members to reach a decision on the offer, according to BBC News.

Renault said it had been unable to reach agreement because French government representatives had requested a postponement.

The French government is the biggest shareholder in Renault, with a stake of more than 15%.

Japan's Nissan also owns 15% of Renault, while Renault owns 43.4% of Nissan's shares.

Fiat Chrysler made the offer for Renault at the end of last month, describing it as a "transformative" proposal that would create a global automotive leader.

Carmakers have faced pressure to consolidate amid major industry shifts, including towards electric vehicles.

"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".