Japan: Govt and Nissan reject Renault merger talks

Nissan’s chief executive Hiroto Saikawa and the Japanese government have refused to engage in merger talks with Renault, Nissan’s French alliance partner,  reported the Financial Times.

The new merger proposal, said one personfamiliar with the situation, had ignited resentments that date back to the era when the now ousted Nissan chairman, Carlos Ghosn, led the alliance. Mr Ghosn had been guiding the alliance towards a merger but those talks were abruptly suspended last November when he was arrested on charges of financial misconduct. Renault’s merger plan involves a 50-50 holding company structure that envisions an equal split between the board members appointed by Renault and Nissan.

“This isn’t a hostile offer but an equal merger,” said one person working with the French carmaker. “Renault is making one concession after the other on this plan but the goodwill won’t last for ever.”

While a merger of equals sounds attractive, people close to Nissan and the Japanese government said Renault has not made clear who would become the chief executive of the new group nor given a timeline of the French government’s exit, reported the Financial times.