Renault is looking to restart merger talks with Nissan sometime in the next 12 months, as it seeks to create one of the world’s largest auto conglomerates, rivaling the VW Group and Toyota.
If Renault and Nissan merge, their next step could be to launch a bid for Fiat Chrysler Automobiles (FCA), which has been discussed in the past under the guidance of former alliance chairman Carlos Ghosn, as reported by Bloomberg. Ghosn’s proposal was then stopped in its tracks by the French government.
Now, Fiat Chrysler Automobiles is currently seeking a partnership or merger, and its chairman John Elkann has already met with other rivals, including the PSA Group.
Absorbing FCA would be a tall order for any automaker, but Renault in particular might be the one to face additional struggles seen as how its most powerful shareholder is the French government, whose stake could potentially be diluted as multiple brands buy in.
While Renault and Nissan’s alliance never went as far as a full merger, it has still proven to be very successful from a financial standpoint – and while the partnership has been affected recently by the scandal surrounding Ghosn, the appointment of chairman Jean-Dominique Senard has improved confidence across the board.
Currently, Renault’s market cap sits at about 16.8 billion euros ($18.9 billion), while Nissan’s valuation is about $35 billion. FCA on the other hand has a market cap of roughly $23 billion.