Renault-Fiat Chrysler merger collapses

French government blamed as a33bn deal to create world's third-largest carmaker stalls

The proposed a33bn (29bn) merger of Fiat Chrysler and Renault has collapsed after an intervention from the French government, Renault's biggest shareholder.

Fiat Chrysler, an Italian-American company, withdrew from a 50-50 merger proposal with its French rival after a board meeting on Wednesday. A deal would have created the world's third-largest carmaker behind Volkswagen and Toyota.