Renault intends to resume Nissan merger talks in 1 year

Renault SA aims to resume merger talks with Nissan Motor within 12 months, after that it will set sight on a bid to buy Fiat Chrysler Automobiles NV, the Financial Times reported.

The plans indicate a return to the strategies supported by previous Nissan boss Carlos Ghosn who held talks about merging Renault with Fiat Chrysler two to three years earlier, the report, which mentioned sources familiar with the matter, stated, adding the French government had opposed the move.

In 2018, Ghosn was ousted as Nissan chair and arrested in Tokyo on financial misconduct allegations of under-reporting his salary. Ghosn has stated the charges were “meritless”.

The recent foundation of a new alliance board led by Renault Chairman Jean-Dominique Senard has led to a boost in confidence that the two parties can now push ahead with the merger plans, FT report noted.

Fiat Chrysler is also looking for a partnership or merger and the firm is holding talks with competitors for a deal, the report said.

Nissan and Renault are also expected to revamp their boards, with Renault decreasing its board’s size and Nissan adding majority outside directors, the report stated.

Nissan, Fiat Chrysler and Renault refused to discuss the FT report.