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France Opposes Giving Nissan Voting Rights in Renault
French economy minister Emmanuel Macron tells reporters the government sees "no reason" to give Nissan Motor Co. voting rights for its 15% stake in Renault SA, Reuters reports.
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French economy minister Emmanuel Macron tells reporters the government sees "no reason" to give Nissan Motor Co. voting rights for its 15% stake in Renault SA, Reuters reports.
The government has temporarily increased its own holding in Renault from 15% to 19.7%. The increase is a bid to block shareholders from maintaining the company's current "one-share, one-vote" policy as Renault's board recommends.
Shareholders can continue the current scheme only through a two-thirds majority vote at Renault's annual meeting on April 30. If the ballot falls short, French law will require Renault to grant double-votes to the government and other long-term investors.
Reuters points out that an outcome favorable to the government would give France close to a blocking minority even if it carries out its pledge to sell the extra shares it acquired. France wants to strengthen its influence on Renault, particularly regarding employment plans in the country.
But media reports say the government's maneuver threatens the stability of Renault's highly successful alliance with Nissan. Renault owns a 43% voting stake in Nissan, but Nissan holds non-voting equity in Renault. Nissan warned last week it would take steps to restore balance if France is successful in bolstering its long-term influence on the Renault-Nissan alliance.
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