Renault again proposes merger with Nissan in post-Ghosn management

TOKYO - Renault SA has again proposed a merger with its Japanese partner Nissan Motor Co., a source close to the matter said Monday, in a move that could ignite a feud within the alliance when its new management is beginning to operate after the removal of Carlos Ghosn.
Nissan rejected the proposal made in mid-April, the source said. The French government -- Renault's biggest shareholder -- offered a similar suggestion in January after the alliance was rocked by the arrest of Ghosn in November, a person familiar with the matter said earlier.

Renault, Nissan's largest shareholder, is seeking to further solidify its partnership with the Japanese company which contributes about half of the French automaker's net profit.

But some Nissan executives view the partnership balance as unfair, according to people familiar with the matter.

Renault holds a 43.4 percent stake in Nissan, which has a 15 percent stake in the French peer without voting rights. Nissan sold 5.65 million vehicles worldwide last year, 1.5 times more than Renault.

The latest proposal comes as the two automakers and Mitsubishi Motors Corp., the third partner in the alliance, launched a new management body in March to steer the world's second-largest auto group by volume. Renault continues to lead the partnership after Ghosn stepped down, with its Chairman Jean-Dominique Senard appointed as head of the new body.

While Nissan and Renault have stressed they will work in a "consultative" manner to strengthen the alliance under the new management team, talk of a possible merger or a review of the capital structure between the two automakers remained a source of tensions.

In a video message earlier in the month, Ghosn, who led Nissan for nearly two decades and was CEO and chairman of Renault, said a "few executives" at Nissan felt threatened about the autonomy of the company due to a possible merger with Renault.

Ghosn was initially arrested in November for alleged financial misconduct at Nissan. He was indicted by Tokyo prosecutors for the fourth time on Monday over alleged misuse of Nissan funds for private purposes.

Source: https://mainichi.jp/english/articles/20190423/p2g/00m/0bu/002000c