Renault Nissan likely to merge into single company

Renault Nissan likely to merge into single company

Shares in French carmaker Renault surged 7.8pc following a Bloomberg report that it is in talks to merge with Japan's Nissan to create a new company that would trade as a single stock.

According to Bloomberg's sources, who aren't being identified at their request, it would mean the end of the companies' alliance and make them one corporation.

Currently Renault is 43% owner of Nissan while Nissan has a stake of 15% in its counterpart from France.

Carlos Ghosn, the current chairman of both companies would be heading this new company.

Shares in Renault rose by more than 8% in early trading on the report in the French capital. Nissan shares had shed 0.5 percent to 1,094.50 yen in a market up 0.6 percent overall.

Getting a deal done could prove very hard, the people said. Representatives for Yokohama, Japan-based Nissan and Renault also declined to comment. The Renault-Nissan alliance said at the time any discussion about a share transaction involving the parties was "pure speculation".

Trump Considering Paying for Border Wall With US Military Budget
The "continuation of building the wall is ongoing, and we're going to continue moving forward in that process", she said. Trump promised the wall would be built during his presidential campaign , even calling for Mexico to fund the project.

A possibility would be basing the new business in the Netherlands or London, where cross Atlantic automaker Fiat Chrysler has the company's corporate charter, but has its headquarters in both the US and Italy.

Both the firms are looking forward towards increasing their collaborations to 10 billion euros by 2022 from 2016.

The alliance forecasts unit sales of 14 million units by 2022, compared with 10.6 million past year.

Renault is Europe's third-largest vehicle maker after Volkswagen and PSA, having sold 1.6m cars past year.

While the companies have claimed a multitude of benefits from their partnership, its staying power could be complicated until imbalances in the companies' ownership structures are resolved. "Nissan and Renault really need to move past the engagement and get married in order to force the kind of changes they need to make to take on Volkswagen and Toyota". "Frankly, I don't even open this subject".

Related Articles