FILE PHOTO: Stefano Patuanelli arrives at Quirinale Presidential Palace, before being sworn in as Italy's minister of economic development, in Rome, Italy September 5, 2019. REUTERS/Ciro de Luca

ROME (Reuters) - The Italian government is following talks between Fiat Chrysler FCHA.MI and Peugeot owner PSA PEUP.PA over a possible tie-up, Industry Minister Stefano Patuanelli said on Wednesday.

Patuanelli told reporters he could not comment further since a potential merger of the two was “a market operation”.

The two carmakers said earlier on Wednesday they were holding discussions aimed at creating one of the world’s leading auto groups.