Renault & Nissan to merge and create a new auto manufacturing entity

Renault

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.

The parties are discussing a transaction in which Nissan would essentially give Renault shareholders stock in the new company, the people said.

Renault now holds a 43% stake in Nissan, while the Japanese vehicle giant owns a 15% share of the French firm, The Independent reports.

Insiders told Bloomberg that the two companies, which formed an alliance in 1999, would operate as a single corporation similar to the Volkswagen Group. Nissan shareholders would also receive shares in the new company in exchange for their holdings. In February this year, Carlos Ghosn, the chairman of Renault SA, announced that both the renowned automobile manufacturers will draft a plan to strengthen their alliance and make it irreversible.

It is forecast that the headquarters of the merged entity will be based in both the countries. Shares of Nissan have been down close to 2% over the a year ago.

Germany v Brazil - story of the match
Brazil coach Tite has spoken about the "ghost" of the 7-1 defeat still haunting the Selecao, but Low said it's time to move on. The World Cup represents the pinnacle for the centre back but he is not the type to wallow in the glory of his achievements.

"Size matters in the auto industry", Lewis said, but "the concern has always primarily been the French government, and somewhat Japan, because both France and Japan like to keep their national champions".

No decisions have been reached and talks, which have gone on for several months, might not result in any deal. They were joined in the alliance by Mitsubishi in 2016.

While the companies have claimed a multitude of benefits from their partnership, its staying power could be complicated until imbalances in the companies' ownership structures are resolved.

"They decide to be here or to get out", he said.

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