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What you need to know about Fiat Chrysler and Renault

The two companies announced yesterday that they were considering merging. That would create one of the world’s biggest automakers, and could help them survive the shift to electric and self-driving cars.

Together, they would be the third-biggest car company in the world, displacing G.M. and following only Volkswagen and Toyota. This would be a merger of equals: Shareholders of each company would hold 50 percent of the combined business, which would have a market value of $39 billion.

Merger talks began in recent weeks when John Elkann, the biggest shareholder in Fiat, learned that Renault had given up on trying to merge with its current partner, Nissan of Japan, according to the FT. Mr. Elkann spoke with Renault and with President Emmanuel Macron (the French government owns 15 percent of the carmaker).

Each has things the other wants. Renault and Nissan were early producers of electric vehicles, where Fiat trails. Fiat could give its French counterpart access to the U.S. market.