Is Hyundai Considering a Bid for FCA?

Rumors in South Korea say Hyundai Motor Co. is weighing a bid to buy Fiat Chrysler Automobiles NV, The Korea Herald reports.

Hyundai strongly denies interest. But the acquisition would offset the carmaker’s sagging sales in China and the U.S., creating an empire with annual volume of some 11.5 million vehicles, muses Lee Jai-il, chief auto analyst with Seoul-based Eugene Investment and Securities Co.

Lee estimates it would cost Hyundai 11.2 trillion won ($9.9 billion) to buy the entire company—or half that much if FCA’s luxury Maserati brand and Magneti Marelli components affiliate are excluded.

But a skeptical industry source tells the Herald a complete takeover would raise redundancy issues because much of FCA’s Fiat-brand product lineup would overlap with the small cars made by Hyundai’s Kia brand.