That Renault and Nissan are in talks to merge and create a new company, reports Bloomberg, citing its own sources. Today, the automakers are partners in a strategic Alliance, which recently have included and Mitsubishi.
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The new company is supposed to keep both headquarters and in Japan and France. Chairman of the Board of Directors of the Alliance Carlos Ghosn manages the negotiations. According to sources, he will subsequently head the new combined company.
Business reports about a possible merger of the perceived “on hurrah”: the shares of Renault and Nissan increased (by 8.3% and 3.6%, respectively) after the occurrence of the relevant reports on the negotiations.
Note the decision of companies to merge into one company is not enough. For the transaction the parties will need to obtain the approval of the government of Japan and the government of France, which owns 15% stake in automaker Renault. It is expected that the authorities will accept the suggestion without enthusiasm.
According to sources, the negotiations representatives of both Renault and Nissan are in the last few months, however, the final agreements they have not yet reached. An Alliance spokesman said the group would not comment on the rumors.
It is reported that the United structure of Renault and Nissan will become a serious competitor for the Volkswagen group and Toyota Motor Corporation. As noted by the expert in the industry, “size matters in the automotive industry”.
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