US-Italian auto giant Fiat Chrysler and France’s Peugeot are in merger talks that would yield an entity valued at about $50 billion, a person with knowledge of the matter told AFP on Tuesday.

Carlos Tavares, the chief executive of Peugeot’s parent, PSA Group, would lead the new company as CEO while John Elkann, chairman of Fiat Chrysler Automobile (FCA), would be chairman.

Discussions between the automakers are ongoing and there is no guarantee of an agreement, the source said, confirming details first published in the Wall Street Journal.

Peugeot posted a new record for revenue of $82 billion (74 billion euros) in 2018 while FCA reported 110 billion euros in revenue.

The French group has a market capitalization of 22.54 billion euros on the Paris Stock Exchange, while FCA is valued at just over $28 billion on Wall Street and 20.74 billion euros in Milan.

A merger of the two groups would bring under one roof Alfa Romeo, Chrysler, Citroen, Dodge, DS, Jeep, Lancia, Maserati, Opel, Peugeot and Vauxhall.

A spokesman for PSA said he could not react to market rumors, while Turin-based Fiat also declined to comment.

The discussions come just months after a proposed merger between Fiat Chrysler and French automaker Renault fell through.

PSA has never hidden its interest in automotive sector consolidation.