Fiat Chrysler Automobiles has agreed to merge with French automaker PSA Group almost five months after spurning a similar merger with Renault, according to media reports. The deal would create the world's fourth-largest automaker.

PSA is in the middle of an initiative to return the Peugeot brand to the U.S. by 2026, and has already introduced a carsharing service in Washington D.C. and two commercial telematics products for North American fleet managers. The Wall Street Journal first reported the agreement. Earlier today, FCA acknowledged it was in talks with PSA.

"Following recent reports on a possible business combination between Groupe PSA and FCA Group, Fiat Chrysler Automobiles N.V. ... confirms there are ongoing discussions aimed at creating one of the world‘s leading mobility groups. FCA has nothing further to add at this time," according to a statement.

The merger would create another global vehicle manufacturer and mobility company woth $50 billion, according to Reuters. Details of the deal weren't initially disclosed.