Nissan to Acquire France’s Stake in Renault?

Renault SA and alliance partner Nissan Motor Co. are discussing a plan in which Nissan would acquire at least part of France’s 15% stake in Renault, sources tell Reuters.

The alliance denies any stock sale. It says the group is exploring deeper synergies and more shared operations. But the partnership insists it has “no plans to change the cross-shareholding ratio” of the companies.​​​​​

Renault currently owns 43% of Nissan, and Nissan holds a 15% nonvoting stake in Renault. Carlos Ghosn, who chairs both companies, had repeatedly stressed that revamping the alliance’s structure would make it stronger and more efficient.

Ghosn backs a plan in which France would shed its entire 15% stake in Renault, Renault would relinquish its control over Nissan and Nissan would gain voting rights in the alliance. Reuters’ sources say Ghosn also has proposed an interim structure under which a Dutch foundation would oversee management of the alliance, which added Mitsubishi Motors Corp. as a third partner last year, as a prelude to more direct management integration.

Reuters notes that implementing those moves would require balancing French and Japanese political interests, while protecting France’s desire to retain jobs, tax revenue and technology development.