(Bloomberg) -- Fiat Chrysler Automobiles NV is nearing a preliminary agreement to merge with Renault SA, according to a person with knowledge of the matter.
Potential hurdles raised by the French government, Renault's most important shareholder, have been overcome, said the person, who asked not to be named discussing private negotiations. Renault's board was still meeting late Wednesday in Paris, with no guarantee an agreement will be reached, people familiar with the matter said.
France, which owns a 15% stake in the French carmaker, has sought assurances on job guarantees and its role in governing the combined company since Fiat proposed the 50-50 deal last week.
An official with the French finance ministry declined to comment, as did representatives of Renault and Fiat.
Fiat shares were fell 1.1 percent to $13.19 at the close in New York. The stock spiked briefly after Reuters first reported on progress toward an accord.
--With assistance from Daniele Lepido and Tommaso Ebhardt.
To contact the reporters on this story: Ania Nussbaum in Paris at anussbaum5@bloomberg.net;Tara Patel in Paris at tpatel2@bloomberg.net
To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net
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