Both companies have denied the merger rumors yet they are still open to cooperating on joint-projects
Both companies have since denied the rumors, telling Italy's Il Sole 24 Ore newspaper that there are no plans to merge with any other parties. However, both have reiterated that they are open to cooperating with other companies on projects that could create industrial synergies or open access to new markets.
According to an insider, however, Italian investment bank Mediobanca has been contacted by Fiat about drawing up a report on merging Fiat's automotive operations with those of PSA. Previous reports also suggested that Fiat was searching Europe to secure a credit line of up to €5 billion to finance a takeover of PSA.
While no one is suggesting that Fiat and PSA are about to merge, it’s often the case that the companies deny rumors only when there is some truth behind them. We wouldn’t be surprised to see some kind of a deal forged, though don’t expect a full blown alliance like the one that will likely take place between Fiat and Chrysler.