There’s a new rumor going around that Hyundai is planning a takeover of Fiat Chrysler Automobiles (FCA), but are the rumors true? According to sources that spoke with Asia Times, Hyundai Motor Group CEO Chung Mong-koo is currently keeping a close eye on FCA’s stock price and once it drops to a certain level, Hyundai will make a takeover bid.

2019 Hyundai Santa Fe

The rumor claims that Hyundai could try to takeover FCA before its annual shareholders’ meeting in the spring of next year. FCA CEO Sergio Marchionne is also expected to step down at the next meeting and a successor hasn’t been named. If Hyundai does in fact takeover FCA it would become the world’s largest automaker.

The merger is reportedly being pushed by Elliott Management principal Paul Singer – an activist shareholder in Hyundai. Elliott Management also has a $1 billion stake in Hyundai.

Even with the latest rumors about an FCA takeover, this isn’t the first time that we’ve heard of a possible FCA merger. A few years ago Marchionne pursued a tie up with General Motors, but he was turned down and last year there was rumor that Chinese automaker Great Wall was in talks to buy Jeep.

While neither automaker will confirm the talks, the Roadshow reached out to the Senior Group Manager of Hyundai Corporate and Marketing Public Relations, Michael Stewart about the rumor, which he replied, “That rumor is totally groundless.”

Source: Asia Times