Nissan to reject new integration proposal from Renault – Nikkei
FILE PHOTO: Renault CEO Thierry Bollore, Renault Chairman Jean-Dominique Senard, Nissan CEO Hiroto Saikawa, Mitsubishi Motors Chairman and CEO Osamu Masuko cast their shadows at a joint news conference in Yokohama, Japan, March 12, 2019. REUTERS/Kim Kyung-Hoon
(Reuters) – Nissan Motor Co Ltd will reject a management integration proposal from French partner Renault SA and will call for an equal capital relationship, Nikkei said on Monday, citing sources.
Nissan’s management feels the Japanese company has not been treated as an equal of Renault under existing capital ties, and a merger would make this inequality permanent, Nikkei said.
Renault has argued in its proposal that an integration would maximize synergies within the French-Japanese alliance, according to Nikkei.
The Financial Times had earlier reported in late March of Renault’s intention to restart merger talks with Nissan within 12 months.
The alliance between Renault and Nissan was first set up in 1999 and was expanded in 2016 to include Mitsubishi Motors.
A Nissan spokesman declined to comment, while Renault was not immediately available for a comment.
Reporting by Bhargav Acharya in Bengaluru, additional reporting by Makiko Yamazaki; Editing by James Emmanuel