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View Full Version : FCA eyeing GM for merger



novicius
August 31st, 2015, 07:20 AM
Marchionne ready to get tough with GM over merger (http://www.autoblog.com/2015/08/31/marchionne-getting-tough-fca-gm-merger/?ncid=edlinkusauto00000016)


FCA CEO Sergio Marchionne absolutely refuses to let go of his dream of a merger with General Motors. With official discussions not happening, Marchionne now hints that a hostile takeover attempt of The General could be under consideration as a future strategy
I remember reading something a few days ago (probably also on Autoblog) that Marchionne said about the Big Money Guys wanting bigger returns that separate automakers can't return (?!).

Ego or financially justified?

Kchrpm
August 31st, 2015, 07:58 AM
Someone with a better understanding of these things would need to explain to me how in the world they would pull off a hostile takeover of GM.

thesameguy
August 31st, 2015, 08:49 AM
1. Mafia
2. ????
3. Profit

Random
August 31st, 2015, 08:59 AM
Would this potentially fall afoul of US anti-trust laws? Or is the market fractured enough that it would pass?

thesameguy
August 31st, 2015, 10:40 AM
That'd be an interesting question. Since GM and the government are an Escher puzzle of pocket-in-pocket it may not matter.

novicius
August 31st, 2015, 11:53 AM
As long as Ford is solo, how would this be a monopoly?

From a Corporatist POV, monopoly laws are becoming increasingly archaic, no? Mergers & acquisitions is the fastest way to add value, and these megacorps are only becoming larger and more diverse, it seems (anecdotally). #ocp

thesameguy
August 31st, 2015, 12:49 PM
It's not necessarily a monopoly consideration but a concentration of influence scenario. FTC blocked the AT&T/Tmo merger because it would have created too large of a company with too much influence, but allowed the Tmo/Metro merger because they were both smaller companies. That happens reasonably often, although it sure helps to have politicians in your pocket. There are typically different considerations for vertical vs. horizontal acquisitions, with the former being scrutinized less and the latter more. While the auto market is more fragmented than the telephone market, FCA+GM could result in a company so big it would be problematic for the market. OTOH, GM 2015 is probably less influential than GM 2005, and maybe 'murica would be better off without Chrysler being passed around like the town whore.