Renault SA will suggest to Nissan Motor Co a plan to create a joint holding firm which might give each corporations equal footing because the French automaker seeks new integration with its Japanese accomplice, the Nikkei newspaper reported on Friday.
Under the proposal, each company would nominate a virtually equal variety of administrators to the brand new firm by which extraordinary shares in each Nissan and Renault could be transferred on a stable foundation, the newspaper mentioned, without citing sources.
This could successfully dilute the stake held by the French authorities in Renault to round 7-8%, from its present 15&, it added. The brand new firm can be headquartered in a 3rd nation, akin to Singapore.
Renault plans to propose Nissan quickly, the Nikkei mentioned, having modified an earlier merger concept which Nissan rejected on April 12.
Nissan declined to touch upon the problem. The Monetary Occasions newspaper reported that each Nissan and the Japanese authorities have refused to interact in merger talks with Renault.
The report of the proposal comes because the outlook for the alliance – one of many world’s great automating partnerships – has clouded because of the arrest in November of its essential architect, Carlos Ghosn, for suspected financial misconduct.
It additionally comes as Nissan’s monetary efficiency struggles following years of specializing in quantity gross sales over constructing its model, significantly in the US, its largest market.