Renault Refuses to Cut 43% Stake in Nissan

Renault CEO Thierry Bollore says the company has no intention of reducing its 43% holding in alliance partner Nissan Motor Co.

“This is not at all our agenda,” Bollore tells reporters. He was responding to a question about lowering Renault’s stake as a way to revive the now-withdrawn overture from Fiat Chrysler Automobiles NV to merge.

But Renault’s lopsided equity position at Nissan also has long been a major source of irritation to the Japanese carmaker and its participation in the 20-year-old Renault-Nissan alliance.

Renault’s 43% stake includes voting rights, thereby enabling the company to block any shareholder vote that require a two-thirds majority. Nissan owns 15% of Renault, but it has no shareholder voting rights with the French company.

Nissan continues to resist Renault’s suggestion that those two companies merge. Reports a year ago indicated that Nissan wants to improve the Renault-Nissan alliance by better balancing the cross holdings held by the partners.

Nissan also favors a sharp reduction in the French government’s 15% stake in Renault, which carries double voting rights.