Fiat-Renault: top duel between investment banks

Goldman against Goldman. While negotiations go into the heat between Fiat-Chrysler, Renault and Nissan and only three days after the announcement, the French camp evokes already a bonus faced with the offer of the Italians, a game at the top is emerging between the merchant banks.

François-Xavier de Mallmann , fine connoisseur of the empire Agnelli and very close to John Elkann, the president of Fiat Chrysler, defends the interests of the Italian-American manufacturer on behalf of Goldman Sachs with Tim Ingrassia. It will compete with two former heavyweights of the world’s number one mergers and acquisitions, James del Favero and Chris Cole, appointed Renault consultants. All these financiers have climbed almost hand in hand the steps of the Holy of Holies of M & A and know each other “very well” for twenty years, says a banker from within.

Council of Ghosn

After more than 25 years in the American firm, where they shaped capitalism (British American Tobacco / RJ Reynolds, GE / Haier, etc.), James del Favero and Chris Cole founded Ardea Partners. And they understand well the springs of the sector: besides the diamond firm, they count General Motors, but also … Fiat Chrysler as a customer. Ardea was already advising Carlos Ghosn on further integration of the Renault-Nissan Alliance, particularly on how to transfer synergies in the form of incentive compensation to its managers, Reuters revealed in 2017.

“The bankers of Goldman are very good negotiators, the discussions will be hard,” says a financier. Especially that they do not arrive alone. Everyone has troops behind him. On the French side, Ardea has partnered with BNP Paribas and Société Générale. On the Italian side, Lazard came to Exor, the holding company of the Agnelli family. Some bankers of the Boulevard Haussmann bank – and this is a peculiarity of this sprawling deal – know the other side. They supported Renault in forming the Alliance.

Japanese people get advice

Instigators of this immense Meccano with Goldman Sachs, the Italians took the support of Benoît d’Angelin, a reputable banker based in London, with a European but also French imprint. A maneuver in the spin-off of Kering Puma and the acquisition of International Power by Engie, he knows the secrets of power and is a support of the first time of President Macron. Alongside them, Nomura’s M & A manager Shinsuke Tsunoda will also be giving the Italian automaker an insight into his discussions with Nissan, a key player in the operation.

The Japanese “camp” at the time cautious views on the merger, has also been armed, it is supported by the American firm Bank of America Merrill Lynch in Paris, London and Tokyo.

Crossed eyes that will have to align to create the world number three of the automobile.

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