Nissan Foresees More Equity in Renault, but No Merger

Nissan Motor Co. CEO Hiroto Saikawa says the company is discussing a more balanced cross-holdings—but not a full merger—with alliance partner Renault SA.

Saikawa tells reporters the objective is to ensure that the 19-year-old alliance will remain successful after Carlos Ghosn, the chairman of both companies, retires in 2019. The partnership has thrived on a combination of independence and shared activities.

But the alliance also is a convoluted series of linked ownerships. Renault owns 43% of Nissan. Nissan holds a 15% nonvoting stake in Renault. The French government holds 15% of the Renault’s voting shares. Nissan owns a controlling 34% stake in Mitsubishi Motors Corp., which also is chaired by Ghosn.

Bloomberg News reported in March that Ghosn is keen to engineer a complete merger between Renault and Nissan. The plan also would sharply reduce the French state’s involvement in the new company, a step analysts believe would be essential to coax Nissan to agree.

For now, Saikawa insists media reports that the two carmakers are discussing a full merger are “absolutely untrue.” Bloomberg says Ghosn currently considers a merger as an option but not necessarily a goal.