Renault shares leap after Nissan merger talks

Renault shares leap after Nissan merger talks

Renault shares leap after Nissan merger talks

A deal would end the current alliance between the companies and marry them as one corporation, the news agency said. As per the forecast, the Nissan-Renault alliance is likely to sell almost 14 million cars by 2022 as compared to 10.6 million auto units in 2017. Negotiations for a possible merger are now on, headed by Carlos Ghosn, Chairman of Renault and Nissan.

Bloomberg noted that the parties are discussing a transaction in which Nissan would essentially give Renault shareholders stock in the new company. The automaker might maintain its headquarter in France as well as Japan. Nissan shares are down almost 2 percent over the past year, giving the company a valuation of 4.6 $43 billion. The government of France is owner of 15% of Renault and might not be agreeable to relinquishing the control it has over its stake or have its 15% position watered down. A Renault-Nissan spokesperson told the BBC: "We do not comment on rumours and speculation".

Earlier in March, Nissan was holding talks to purchase a large portion of the stake held by the French government. The companies have been linked for almost two decades by a cross shareholding and by sharing Carlos Ghosn in key leadership positions, but the question of who will succeed Ghosn in a few year time has put the structure of the alliance on the front burner.


The companies are seeking to double synergies to 10 billion euros ($12.2 billion) by 2022 from 2016. The two companies have been sharing technologies under their alliance and now they want to further strengthen their association.

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

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