London (CNN Business) 1. Fiat Chrysler bails: Fiat Chrysler (FCAU) has withdrawn its proposal to merge with French automaker Renault (RNLSY), squashing a deal that would have reshaped the auto industry and created the world's third largest carmaker.

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."

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

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

Shares in Renault plunged nearly 7% in Paris on Thursday after the proposal was withdrawn. Fiat Chrysler stock dropped 1.6% in Milan.