Saturday 8 June 2019 3:04 pm

France consider selling Renault stake to aid Nissan alliance


Sport and Business Reporter at City AM. Email: michael.searles@cityam.com

Sport and Business Reporter at City AM. Email: michael.searles@cityam.com

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France is ready to cut its stake in Renault in order to help the car company consolidate its partnership with Nissan.

The state currently owns a 15 per cent share in Renault, but French finance minister Bruno Le Maire is ready to reduce that if it leads to a “more solid” alliance between the firms, according to Agence France Press (AFP)

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“We can reduce the state’s stake in Renault’s capital,” he told AFP.

“This is not a problem as long as, at the end of the process, we have a more solid auto sector and a more solid alliance between the two great car manufacturers Nissan and Renault.”

Le Maire had previously said the French government would consider a deal with Fiat Chrysler as long it respected the firm’s partnership with Nissan.

But on Thursday, Fiat abandoned its $35bn merger offer, scuppering any chance of creating the world’s third-biggest car producer behind Toyota Motor Corp and Volkswagen.

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The Italian firm blamed the government, saying it had tried to push for a series of guarantees and concessions, Reuters claim.

Neither Renault or Nissan immediately responded to request for comment.

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