Fiat Chrysler Automobiles and Renault are allegedly looking to revive talks about a potential merger.
Reuters reports that Nissan wants Renault to significantly reduce its 43.4 per cent stake in the Japanese car manufacturer in return for its support of a $35 billion merger between FCA and Renault.
FCA officially presented its merger plan to Renault on May 27 and discussions were being held regarding the deal. However, the Italian-American automaker abruptly withdrew its offer for a merger in the early hours of June 6 citing France’s current political situation. It was later revealed that the French government had blocked a vote by Renault’s board on the matter in a bid to win Nissan’s backing for the deal.
Also Read: French Government Denies Blame For Collapsed Renault-FCA Merger Proposal
Sources within the Alliance claim FCA chairman John Elkann and Renault chairman Jean-Dominique Senard have held talks about continuing the negotiation, but both companies are refusing to comment on the reports officially.
It is believed that a senior advisor from FCA on the Renault merger bid, Toby Myerson, was at Nissan headquarters in Yokohama, Japan on Monday for discussions with top management, likely including Nissan chief executive Hiroto Saikawa.
Saikawa has long argued that its alliance with Renault needs "re-balancing". Nissan is far larger than Renault but it only holds a 15 per cent stake in the French automaker and no voting rights, while Renault controls 43.4 per cent of Nissan – something the Japanese definitely think needs to be re-adjusted…
Shortly after the proposal collapsed last week, the French government said it was willing to reduce its 15 per cent stake in Renault in an effort to see the merger come to fruition, but only if that would benefit both the automaker and the Alliance in general.