FILE PHOTO: The logo of FIAT carmaker is seen on a steering wheel in Cairo, Egypt, May 19, 2019. Picture taken May 19, 2019. REUTERS/Mohamed Abd El Ghany/File Photo

PARIS (Reuters) - Shares in both Fiat and Renault surged higher on Monday, as analysts welcomed a proposed merger between the two carmakers.

Fiat rose around 19% in early session trading in Milan, while Renault’s shares were up 16%.

“Strong fits in product/scale, further indications that OEM consolidation is on the agenda, an opportunity to re-deploy capital at Renault, and confirmation of FCA as an M&A target, are positives,” wrote brokerage Jefferies.

Fiat’s advisers on the deal include Goldman Sachs, Nomura and boutique investment bank d’Angelin & Co.