New York (CNN Business) Fiat Chrysler has withdrawn its proposal to merge with French automaker Renault — a deal that would have reshaped the global auto industry and helped the carmakers compete in the race for electric and self-driving vehicles.

The company said Wednesday that it "has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully."

Renault RNLSY requested its board of directors postpone the vote on the merger. Earlier in the day, said that the French government hadrequested its board of directors postpone the vote on the merger.

France, which owns 15% of Renault and is the company's largest shareholder, had previously indicated that it would support a merger if the companies protected French jobs and auto plants.

Renault said in a statement on Thursday that it was disappointed not to be able to pursue the merger, which it said had "great financial merit" and "compelling industrial logic."