Japan/France: Nissan, Renault merger? Automakers reportedly discuss deal

Japanese automaker Nissan and French automaker Renault are reportedly weighing a deal to fully merge after years of close cooperation and ownership ties.

A deal to combine Nissan and Renault would come as their ongoing collaboration on vehicle development and manufacturing has turned into one of the most powerful automotive alliances in the world. Bloomberg on Thursday, March 29, reported the discussions after months of rumors.

A deal would end the current alliance between the companies and marry them as one corporation, said the people, who asked not to be identified as the details aren’t public. Renault currently owns 43% of Nissan while the Japanese carmaker has a 15% stake in its French counterpart. Carlos Ghosn, the chairman of both companies, is driving the negotiations and would run the combined entity, the people said.

The parties are discussing a transaction in which Nissan would essentially give Renault shareholders stock in the new company, the people said. Nissan shareholders would also receive shares in the new company in exchange for their holdings, they said. The automaker may maintain headquarters in both Japan and France.

Full Content: Bloomberg

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