Carlo Tavares is reading from Sergio Marchionne’s script. A $45 bln merger would, in theory, deliver massive cost savings which could be invested in new technology. But politics makes that hard. And while PSA would gain a U.S. foothold the Agnellis would be pulled back to Europe.
The French gas and power group is decluttering its complex structure by exiting 20 markets. Engie’s state ownership and Belgian nuclear albatross act as a brake on activism, but won’t always save it if its undervaluation lingers. Still, steps to close the gap with big wind and solar peers suggest a capacity for self-help.