After the PSA Group approached Fiat Chrysler Automobiles this year with regards to a possible merger, the Italian-American automaker rejected the offer, as per the Wall Street Journal, citing sources familiar with the matter.

According to the report, executives at the two companies are no longer talking about teaming up, with FCA being against the idea of increasing its exposure to Europe’s mature market, while the Agnelli family, which holds a controlling stake in the company, doesn’t want a transaction financed with PSA stock.

This means that a successful PSA offer would probably have to use equity in order to keep debt under control, seen as how the automaker has yet to fully process its acquisition of GM’s European business, reports Autonews Europe.

Still, FCA CEO Mike Manley told reporters in Geneva this month that he’s not opposed to a deal that would make his company stronger.

“I want to find areas where cooperation – whether it is partnerships, whether it’s joint ventures or whether it is deeper levels of equity cooperation that makes sense for us and whoever that is – [will] give better vehicles to our customers and a better return to our shareholders.”

Meanwhile, Richard Hilgert, a senior equity analyst at Morningstar, said that from a volume perspective, it would make sense for FCA and PSA to combine forces, as together they would produce nearly 9 million cars per year, giving them the power to compete with the VW Group, Toyota and the Renault-Nissan-Mitsubishi alliance.

A merger could also help PSA’s Peugeot brand to work alongside an “established set of dealers” once they return to North America, added Hilgert.