French minister refuses to seek a merger between Renault and Nissan

PARIS (Kyodo) – The French Minister of Economy and Finance, Bruno Le Maire, has denied having requested a merger between Renault SA and Nissan Motor Co. during talks with the Japanese government after the arrest of Nissan's former president, Carlos Ghosn, reported Sunday local media. .

"The subject is not on the table today, what is on the table today is the governance of Renault," he told reporters. during a visit to Cairo, according to the AFP news agency. "The important thing for us is to have a strong, stable and sustainable governance for Renault."

The French government is Renault's largest shareholder with a stake of more than 15%. As part of the partnership created by Ghosn, Renault holds a 43.4% stake in Nissan, which holds 15% of the French group but without the right to vote. Another Japanese automaker, Mitsubishi Motors Corp., also joined the group in 2016.

In an article published Sunday in an interview with The Sunday Journal, The Mayor also said that a change in cross-shareholdings between Renault and Nissan "is not on the table".

Sources close to the case said Sunday that the French government had made this merger application, which apparently aimed to place the two builders under the wing of a new holding company, during discussions between French officials. and Japanese in Tokyo last week and this request reflected President Emmanuel. Macron's wishes.

In Tokyo, the secretary general of the Japanese cabinet, Yoshihide Suga, said Monday at a press conference that the Japanese government believed "that it is important that discussions continue on how the company is doing." Nissan-Renault alliance should be able to satisfy the people concerned ".

The Mayor also announced that the Renault Board of Directors is expected to meet in the coming days to discuss a new leadership, according to AFP.

During the meeting, Mr Ghosn could possibly be removed from his functions as CEO and President of Renault, as well as a successor. The French automaker kept him in his roles despite his arrest in Japan in November for his alleged financial misconduct at Nissan, according to local reports.

It is generally believed that Nissan hopes to reduce the influence of the French partner on its management and review the alliance to make it more equitable.

Ghosn was charged with violating the law on financial instruments and aggravated breach of trust.

He is accused of having underestimated for years his compensation in Nissan's financial statements and of having transferred the losses on derivatives of his private badet management company in the books of the Japanese builder .

Nissan, which forwarded the charges to prosecutors following the report of a whistleblower, and Mitsubishi both overthrew Ghosn as president after his arrest.