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Fiat Chrysler “has today delivered a non-binding letter to the Board of Groupe Renault proposing a combination of their respective businesses as a 50/50 merger”, it said in a statement on Monday.

Italian-US auto giant Fiat Chrysler said it presented a merger proposal to France’s Renault on Monday that would create “a preeminent global automotive group”.

Fiat Chrysler “has today delivered a non-binding letter to the Board of Groupe Renault proposing a combination of their respective businesses as a 50/50 merger”, it said in a statement on Monday.

The group would be listed in Paris, New York and Milan.

Renault said its board would meet on Monday to discuss the offer.

Fiat Chrysler said the merger would create the world’s third largest automaker, with annual sales of 8.7 million vehicles.

The brand portfolio of the two groups would be “broad and complementary… and would provide full market coverage, from luxury to mainstream”, it said.

In a nod to the move towards more ecologically-friendly and self-driving models, it said the merger would put the group in “a strong position in transforming technologies, including electrification and autonomous driving”.

Renault’s current major partnership is with Japan’s Nissan, in which it holds 43%.

Fiat Chrysler said the merger would create “in excess of €5 billion ($5.6 billion) estimated annual run rate synergies” on top of existing Renault-Nissan-Mitsubishi Alliance ones.

It would not result in the closure of any production sites, and the board of directors of the new group would be composed mainly of independent members, it added.