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Report: Nissan Demands More Clout in Alliance with Renault
Nissan Motor Co. reportedly is demanding a more balanced shareholder structure for its 19-year--old alliance with Renault SA.
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Nissan Motor Co. is demanding a more balanced shareholder structure for its 19-year--old alliance with Renault SA, sources tell Bloomberg News.
Leading the call for reform is Nissan CEO Hiroto Saikawa, who gained control of the company after Chairman Carlos Ghosn was arrested on suspicion of financial wrongdoing. Nissan’s board voted unanimously yesterday to remove Ghosn as chairmanship.
Ghosn remains chairman and CEO of Renault and chairman of the Renault-Nissan alliance. Mitsubishi Motors Corp., in which Nissan holds a 34% controlling stake, joined the alliance in September 2017.
Nissan has chafed for years at the structure of the alliance. Renault owns 43% of Nissan and can participate in decision-making by the Japanese carmaker. Nissan holds a 15% stake in Renault but has no voting rights. Earlier this week the Financial Times cited sources who say Ghosn had been leading an effort to fully merge the two carmaker, a move Nissan strongly opposes.
When the alliance was formed in 1999, Nissan was teetering on the edge of bankruptcy. Ghosn, dispatched by Renault, successfully revived the Japanese carmaker. Today Nissan contributes about 60% of the combined sales of the two companies.
Japanese law dictates that Renault’s voting rights in Nissan’s affairs would end if Nissan raised its stake in Renault to more than 25%, according to Bloomberg. It says French law dictates that Nissan’s ability to gain voting rights for its Renault stake would improve if Renault reduced its holding in Nissan to less than 40%.