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Nissan, Renault open to change in equity structure to preserve alliance


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Nissan, Renault open to change in equity structure to preserve alliance

Nissan Motor Co. Ltd. and Renault SA are considering various options including a more balanced equity structure, to preserve their alliance beyond the current leadership, Reuters reported May 14.

The partnership, which also includes Japan's Mitsubishi Motors Corp., aims to strengthen its alliance before Chairman Carlos Ghosn retires.

Nissan CEO Hiroto Saikawa said a change in equity structure to create a more equal balance between the two companies was one of the options being studied, Reuters reported.

Saikawa said media reports that Nissan and Renault were discussing a "full merger” were "absolutely untrue." Ghosn has said a merger is a potential option, though not necessarily a goal.

It was previously reported that the French government wanted a merger between the two companies which was rejected by Nissan.

Currently, Renault owns a 43.4% stake in Nissan but agreed to limit formal control of its larger partner in a 2015 shareholder pact to defuse a standoff with the French government. Nissan owns a 34% stake controlling stake in Mitsubishi and a 15% stake in Renault, with no voting rights, reported Reuters.