Fiat Chrysler and Renault, two automakers looking to curb costs producing vehicles and pool resources for developing the next generation of automobiles, are planning a merger to create the world's third largest automaker.

According to a statement from Fiat Chrysler Automobiles, the combined business would be owned 50/50 between shareholders of FCA and Groupe Renault. A board of governors would hold a majority of independent directors.

Shares in Fiat Chrysler and Renault jumped 13% and 11.5% respectively.

The merger still requires approval by the boards of both automakers.

Reuters reported Monday that Renault board members will meet informally within days with the intent to make a decision early next week on whether to proceed with the proposed full merger.

The joint organization would produce estimated sales of 8.7 million vehicles a year and would be considered the world's third largest car manufacturer.

Fiat Chrylser said the combined entity would generate savings of 5 billion euros annually ($5.6 billion) and be "carried out as a merger transaction under a Dutch parent company."

The press release from Fiat Chrysler added that there would be no plant closures as a reults of the tie-up and the union should provide an opportunity to lead in the development of electric and autonomous vehicles.