Renault Wants To Merge With Nissan, And Take Over FCA

by under News on 28 Mar 2019 01:24:12 PM28 Mar 2019

Wait, what?

Renault Wants To Merge With Nissan, And Take Over FCA – Gallery

Despite the repeated claims by disgraced boss Carlos Ghosn that he was framed for financial misconduct to scupper plans of a merger, it seems that Renault will indeed pursue a full merger with Japanese marque Nissan, furthering their stake in the company that they saved from near death in 1999.

This will undoubtedly be a pain in the side of Nissan which, despite boasting a valuation about double that of Renault, is still controlled by the French carmaker thanks to the majority stake that Renault has in Nissan. Again, Ghosn claims that his strategy to merge the two companies (on the instruction of the French government, a major stakeholder in Renault) was what triggered investigations into his finances and subsequent ‘framing’ for financial misappropriation.

Renault Wants To Merge With Nissan, And Take Over FCA – Gallery

Beyond that, Bloomberg reports that the Renault-Nissan-Mitsubishi Alliance may also have Fiat-Chrysler Automobiles in its crosshairs. Not to surpass in the showrooms, but to takeover it seems. John Elkann, the new FCA boss, has met with several automakers (and rejected Groupe PSA's first bid) to pedal the Italian-American outfit for the proposition of a merger or partnership.

The Renault-Nissan-Mitsubishi Alliance might have a bit of issue with a merger, given that Renault’s majority shareholder is the French government. With an FCA takeover, the shareholding split within the Alliance might get seriously messy. But that said, confidence has risen since Jean-Dominique Senard was appointed chairman of the Alliance, and so there could be greater reliance on his word, ensuring that any major changes can be handled smoothly.

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