France: Renault-Nissan-Mitsubishi deny discussing buying out French state

The Renault and Nissan Motor alliance denied a report that the companies are in talks to buy the French state out of its holding in the nation’s automaker in a step toward a possible merger.

Responding to media reports claiming the Japanese carmaker could buy most of the French government’s stake in Renault, a spokesperson for the Alliance said:, “As announced last week by Carlos Ghosn, chairman and CEO of Renault-Nissan-Mitsubishi, the Alliance is exploring deeper synergies and increased operating convergence, but has no plans to change the cross-shareholding ratio of its member companies. Any discussion about a share transaction involving Renault, Nissan or the French State is pure speculation.”

Shares in Renault jumped more than 8% higher in late trade on France’s Cac 40 following a Reuters report it was discussing plans for a closer tie-up with the Japanese carmaker that could see the French government sell most of its 15% stake in Renault to Nissan.

The French carmaker and Nissan formed the Alliance in 1999, sharing purchasing back-office functions and manufacturing rival vehicles in the same plants. Mitsubishi Motors joined the Alliance in 2016 after fallout from an emissions data falsification scandal forced it to accept a capital injection from Nissan.

Full Content: Financial Times

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