Renault’s proposed merger with Nissan isn’t expected to be completed until 2020. That would be the earliest according to the CEO of both companies, Carlos Ghosn. Ghosn said that the alliance, which also includes Mitsubishi, is still looking at areas that will help in consolidation of the entities.
Renault currently owns 43.4 per cent of Nissan while the Japanese brand also owns a 15 per cent stake in Renault. Market sources indicate Nissan seems to be resisting the merger unless the company gains more clout in key areas.
Nissan’s top management believes that they have the superior engineering capabilities and hence want to lead crucial operations such as product development. Chief executive officer Hiroto Saikawa said recently that he wants Nissan to maintain some autonomy while still reaping the benefits of working with Renault.
Meanwhile, Ghosn, who is reportedly in charge of negotiations between both companies has a balancing act to complete before going forward. A merger of the two companies would see shareholders from both Renault and Nissan receive stock in the newly formed company.
Following a merger, it is unknown whether one of either the Nissan or Renault names will be retired, or if they will continue to exist together in a Jaguar Land Rover-style arrangement.
The newly formed future company is expected to maintain headquarters in both Japan and France, although a single head office in either the UK or the Netherlands is also said to be a distinct possibility. Besides the above, the merger deal would have to be approved by both the French and Japanese governments before it goes ahead. The French government will remain a part owner of Renault with its 15 per cent stake, and the merger could reduce its influence on the company.