European shares open higher thanks to possible merger of Renault and Fiat

Economy and stock exchange

European shares rose on Monday as a possible merger between Renault and car stocks surged, with investors assessing the outcome of the European Parliament elections as pro-EU parties are expected to hold two-thirds of the seats.

By 0715 GMT, the Stoxx 600 European index rose 0.5% as most indicators rose but trading volumes were weak as markets closed in the UK and US.

The car sector index rose 2.5% ahead of the rest of the sectors, while Italian car maker Fiat Chrysler confirmed the offer of "merger merger" to French counterpart Renault in a deal that may create the world's third largest automaker and may contribute to address the weakness that is taking place The two companies.

The structure of the proposed deal is that each company will own 50% through a Dutch holding company, and the two companies will lead the STOXX 600 index, each with a 15% share.

Meanwhile, German automaker Volkswagen rose 2% after a German newspaper reported that the company plans to build a unit to produce battery cells in Salzgitter jointly with the Swedish-based Northvolt.

Related topics

.