30 Mar 18

Nissan and Renault to become one company

A Bloomberg source announced that Renault and Nissan are negotiating a full merger, which would create a new automaker representing the alliance’s different brands. The merger would end the current professional alliance between the French and Japanese constructors and create a new company. Today, Renault owns 43 per cent of Nissan and the Japanese hold 15 per cent of their French partner. Both companies already share one CEO, Carlos Ghosn, who would also become CEO of the new automaker, following Bloomberg’s sources.

Whatever the outcome, negotiations are undoubtedly quite difficult, given the fact that the government of France is a major shareholder of Renault, with 15 per cent of the company’s capital, and might not wish to see that part lowered once the new company is created. Another problem could be the implantation of the company’s headquarters, in France or in Japan, given the strong symbolical value of the latter. For that reason, according to Bloomberg’s source, choosing London or Amsterdam could be a valid alternative.

The source said that the negotiations have been going on for some time and could still bear no final result, given the high stakes involved.

Neither Renault nor Nissan wished to comment on the news, nor did the spokesman of the Renault-Nissan alliance.

In the mean time, Nissan, being the largest shareholder in Mitsubishi Motors, continues to integrate that other Japanese manufacturer into the alliance.

Source: Bloomberg, Autonews.com

Authored by: Stijn Blanckaert