Nissan: No Plan to Dilute Renault’s Stake

Nissan Motor Co. has denied a Nikkei report that it plans to issue new shares to reduce Renault SA’s 43% stake in the company.

The Nikkei also said Nissan hopes to increase its holding in Renault to at least 25% from the current 15%. The Tokyo-based newspaper claims both moves were discussed by Nissan’s board on Monday as efforts to better balance control of the 16-year-old Renault-Nissan alliance.

Renault’s current stake in Nissan gives it control of the alliance and Nissan. The Japanese company, which was near bankruptcy when the alliance began, now contributes about two-thirds of the partnership’s sales and even more of its profits. But the current equity split gives Nissan no voting rights.

As CEO of both companies, Carlos Ghosn is pushing to give Nissan more input in the alliance’s business plans. The French government, which holds a 19.7% stake in Renault, is adamant about maintaining the status quo and protecting jobs in France.