Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
 | 
Last updated 9 hours, 36 minutes ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
HOME LOCAL MIDEAST ASIA WORLD BUSINESS SPORT OPINION WRITERS
Nissan in talks to acquire stake in Renault
March 09, 2018
 Print    Send to Friend

LONDON/GENEVA: Renault and alliance partner Nissan are discussing plans for a closer tie-up in which the Japanese carmaker would acquire the bulk of the French state’s 15 per cent Renault holding, people close to the matter told Reuters.

The carmakers are in talks with government officials over proposals by Renault-Nissan boss Carlos Ghosn that would see Paris give up influence at Renault and the French carmaker relinquish control over Nissan, according to three sources.

But any deal still faces significant hurdles - not least its extreme political sensitivity in France —and has yet to win government approval, they said. To do so, it must balance French and Japanese interests, avoiding the appearance of a takeover.

“Any discussion about a share transaction involving Renault, Nissan or the French state is pure speculation,” Renault-Nissan spokesman Jonathan Adashek said. The alliance “has no plans to change the cross-shareholding ratio of its member companies”, he added.

French government officials did not return calls and messages seeking comment.

Renault is being advised by BNP Paribas and Nissan by Nomura on the planned stake sale, which would happen either as part of a broader Renault-Nissan combination or as a “stepping stone” on the way to one, the sources said. The banks did not respond to requests for comment.

Ghosn has also proposed an interim structure that would see management of Renault, Nissan and Mitsubishi Motors overseen by a Dutch foundation as a prelude to their integration as a global automotive group based in Amsterdam, sources said.

Renault shares rose sharply on the news, and were 8.2 per cent higher at 96.73 euros as of 1604 GMT.

The Renault-Nissan alliance, underpinned by cross-shareholdings, has wrestled intermittently since its 1999 inception with plans for full mergers that have foundered on objections from France, Renault’s biggest shareholder.

But with Ghosn, the alliance’s main architect, now beginning his final term as Renault CEO, the government has been pressing for a tie-up to secure the future of Renault-Nissan, the world’s largest carmaking group by sales last year.

Reuters

Add this page to your favorite Social Bookmarking websites
Comments
 
Post a comment
 
Name:
Country:
City:
Email:
Comment:
 
    
    
Related Stories
Renault posts record profit as emerging-market sales surge in H1
PARIS: French carmaker Renault said on Friday it achieved record profitability in the first half as emerging-market sales surged, more than offsetting exchange-rate chall..
Renault boss faces tight shareholder vote on pay
PARIS: Renault boss Carlos Ghosn faces another nail-biting salary vote when the French government, the carmaker’s largest shareholder, is expected to oppose his 7.4 milli..
Carmakers hike spare part prices frequently
LONDON/PARIS: Carmakers including Renault, Jaguar Land Rover and Peugeot have boosted revenues by over $1 billion in the past decade by using sophisticated pricing softwa..
Renault posts record earnings for 2017
PARIS: French carmaker Renault posted record sales and profit for 2017, bolstering Chief Executive Carlos Ghosn’s position in the face of government demands for a clearer..
France cuts stake in Renault
PARIS: The French government began the sale of 4.73 per cent stake in carmaker Renault, paring its holding back to the 15 per cent that preceded a 2015 power struggle wit..
FRONTPAGE
 
GALLERY
 
PANORAMA
 
TIME OUT
 
SPORT
 
 
Advertise | Copyright