Car manufacturers Renault and Fiat Chrysler want to merge. Fiat Chrysler announced this on Monday. Based on this news, Renault’s share price rose by no less than 17 percent. The share of Fiat Chrysler rose 8 percent.

The intention is that the two car manufacturers will operate from a Dutch holding company. This should result in an annual saving of 5 billion euros. Both companies will each have a 50 percent stake in the holding company. The merger should create a combined company with a market value of 32.6 billion euros. Only Toyota and Volkswagen are bigger at the moment.

At the moment there is a lot of pressure on car manufacturers to come up with models that are less polluting for the environment. It is therefore no surprise that the newly formed company wants to focus more on the production of electric and self-driving cars.

Fiat Chrysler has indicated that the new company will be listed in Paris, New York and Milan. The Dutch headquarters seems to have tax-related reasons only.