Paris - Renault's board of directors will meet on Tuesday to formulate its response to a merger proposal by Fiat Chrysler, which is likely to lead to talks aimed at creating the world's third-largest carmaker, the company said.
Fiat Chrysler has offered a "merger of equals" with its French rival, a prospect that has been welcomed by investors who have sent shares in both automakers up sharply since the bid was unveiled on Monday.
Together they would produce 8.7 million vehicles a year, creating an industry powerhouse with an expected market value of more than 30 billion euros (R490bn).
A deal would hold advantages for both carmakers, with the Italian-US Fiat Chrysler a latecomer to the electric vehicle market, where Renault has built up a commanding lead.
The French firm meanwhile doesn't have a presence in North America, where Chrysler is strong in the SUV and pick-up sectors.