The Chinese automotive group states that it is not interested in expanding its portfolio. The purchase of assets such as Iveco, Alfa Romeo or Maserati would have allowed access to new markets and led to the emergence of a high-end hub with Lotus.
Geely denies having any interest in Fca. With an official note, the Chinese group highlighted that "it does not intend to expand its current portfolio and has not undertaken any commercial dialogue with its counterpart". The holding company has therefore specified that it is "completely focused on developing its capacity for internal innovation and on its long-term sustainable development".
In recent weeks there have been rumors of renewed interest in Chinese groups for assets of both Cnh Industrial and Lingotto, also with a view to consolidating the sector. In the background, the talks on duties between the United States and China, with the prospect of consequences on the automotive sector if the first two economies in the world can not find an agreement by March 1. That eventuality would result in the doubling of duties.
The advances of the last weeks reported an approach undertaken by the group founded by Li Shufu, which among the others also controls the brands Volvo, Polestar and Lotus. A company with a revenue of 41 billion dollars and a profit of almost 2 billion dollars.
According to what leaked, Geely would have shown interest in some Cnh assets, in particular commercial vehicles, then expanding to those Fca, identified in the insiders in brands such as Alfa Romeo or Maserati, with the aim of focusing on premium and high range brands.
A prospect welcomed by the analysts of Mediobanca. "The sale of the Alfa and Maserati brands would allow Fca to sell four industrial plants based in Italy on a total of seven, significantly reducing capacity in the Europe, Middle East and Africa area (EMEA)", wrote the investment bank to comment on the rumors. Adding that: "The sale of Iveco would make sense for Geely which would be able to enter new markets: Emea and Latin America and buy new segments: medium and heavy duty vehicles. The news would be positive for Cnh because the eventual sale of the business truck represents a strong catalyst for the action ".
In their sum of the shares of Fca, analysts have estimated less than 500 million the Maserati at the enterprise value level in light of the sharp reduction in volumes expected in 2018, -24%, and of the EBIT down to 147 million, while Alfa Romeo has a negative assessment considering that it is not yet profitable.
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