Renault to propose joint holding company with Nissan

Jessica Clark
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French carmaker Renault is preparing to propose a joint holding company with Japanese partner Nissan to give the two firms equal footing, according to reports.

Both carmakers would nominate an equal number of directors to the joint company which would be lead by Renault chairman Jean Dominique Senard, Reuters reported citing sources close to the discussions.

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The proposal would target further integration between the two companies.

The plans were first reported by the Nikkei business daily which said that Renault will propose a plan to Nissan, under which ordinary shares in both carmakers would be transferred to the new company on a balanced basis.

If the plan goes ahead the French government’s 15 per cent stake in Renault would be diluted to about seven to eight per cent.

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The new company would be headquartered in a third country, such as Singapore, the Nikkei said.

Earlier this month Renault reportedly approached Nissan with a merger idea however, Nissan chief executive Hiroto Saikawa refused to discuss the plan with Senard, Reuters said.