Will Japan allow a Nissan-Renault merger?

The French government has asked Japan to accept a merger between Renault SA and Nissan Motor Co. and Carlos Ghosn was subsequently arrested. He had managed the alliance of the carmakers, sources close to the matter said Sunday.

 

The request, made at talks between French and Japanese officials in Tokyo, reflects President Emmanuel Macron’s wishes, the sources said. The French government is the biggest shareholder in Renault with a more than 15 percent stake, while Renault owns 43.4 percent of Nissan with voting rights.

photo credit to: https://www.japantimes.co.jp

Macron held talks with Prime Minister Shinzo Abe last month in which they only agreed to ensure a stable relationship within the three-way alliance, also involving Japan’s Mitsubishi Motors Corp.

 

Nissan, which holds a 15 percent stake in Renault, is widely seen as hoping to reduce the influence of the French partner on its management and review the alliance to make it more equitable.

 

Ghosn was arrested in Japan last November, 2018 and has been indicted for allegedly underreporting his remuneration in Nissan’s financial statements, among other charges. Nissan has ousted Ghosn as chairman, while saying it did not have enough checks on his power during his two-decade reign.

 

Ghosn is known for saving Nissan from bankruptcy in the early 2000’s. However, he was sent to the Japanese automaker from Renault in 1999 as chief operating officer. He became Nissan president in 2000 and served as chief executive from 2001 to 2017.

 

Nissan will hold the first meeting of its new committee on Sunday aimed at improving its corporate governance following Ghosn’s arrest. The committee, comprised of Nissan’s external directors and business experts, is set to compile proposals by March, after which Nissan will decide on a successor to Ghosn.

 

Renault is expected to put a new leadership in place this week by replacing Ghosn as chairman and CEO, since he has been denied bail in Japan. Ghosn has denied all allegations against him.

 

Reference: France presses Japan to accept Renault-Nissan merger

COMMENTS

Leave a Reply

Your email address will not be published. Required fields are marked *

Want to know the latest news and openings in Japan.

Subscribe to our weekly newsletter.

Promise, we’ll keep you posted!