Renault Set to Renew Nissan Merger Push Will Propose Joint Holding Company with Nissan

The AIADA newsletter reported that Renault will propose to Nissan Motor Co a plan to create a joint holding company which would give both firms equal footing as the French automaker seeks further integration with its Japanese partner, citing the Japanese publication, the Nikkei.

Under the proposal, both firms would nominate a nearly equal number of directors to the new company in which ordinary shares in both Nissan and Renault would be transferred on a balanced basis. This would effectively dilute the stake held by the French government in Renault to around 7 to 8 percent, from its current 15 percent, it added. The new company would be headquartered in a third country, such as Singapore.

Renault plans to make the proposal to Nissan soon, the Nikkei said, having modified an earlier merger idea which Nissan rejected on April 12.

The report of the proposal comes as the outlook for the alliance – one of the world's top automaking partnerships – has clouded since the arrest in November of its main architect, Carlos Ghosn, for financial misconduct.