March 12 (Reuters) - Stellantis ( STLA ) is exploring

deals with Chinese carmakers whereby they would invest in the

Fiat owner's struggling European operations, Bloomberg News

reported on Thursday.

The carmaker's executives have met with China's Xiaomi ( XIACF )

and Xpeng Inc ( XPEV ) to discuss options for an

overhaul of Stellantis ( STLA ) in Europe, including for the Chinese

companies to acquire stakes in Maserati or other brands, the

report said, citing people familiar with the matter.

"As part of its normal course of business, Stellantis ( STLA ) holds

discussions with a range of industry players around the world on

various topics, always with the ultimate aim of providing

customers with the best mobility choices," a Stellantis ( STLA )

spokesperson told Reuters.

The proposed overhaul might eventually lead to a further

separation between Stellantis' ( STLA ) U.S. and European arms, the

report said, adding that a full breakup is not the focus of

current discussions.

"Stellantis ( STLA ) states in the most categoric terms that there is

no truth in the suggestion that it is considering a plan to

split the Company. Any assertion to the contrary is pure

invention," the spokesperson said.

Xpeng ( XPEV ) and Xiaomi ( XIACF ) did not immediately respond to requests for

comment. Reuters could not verify the report.

Western automakers have been juggling investment between

electric vehicles and petrol models while contending with

fast-rising Chinese rivals and higher trade barriers.

Stellantis ( STLA ), created through the merger of Fiat Chrysler and

Peugeot maker PSA, last month announced 22.2 billion euros

($26.4 billion) in charges, scaling back its EV ambitions as

Europe waters down emissions targets in a move that would allow

combustion engines to stay around for longer.

Several Chinese carmakers have made moves to set up

production in Europe. Chinese automaker Leapmotor will

build vehicles at a Stellantis ( STLA ) plant in Spain as part of a joint

venture.