Renault Nissan Merger Will Not Happen Before 2020

Khodrocar - Renault's proposed merger with Nissan isn't expected to be completed until 2020 at the earliest according to the CEO of both companies, Carlos Ghosn.

The Brazilian executive told a Bloomberg conference that the alliance, which also includes Mitsubishi, is still looking at ways in which to consolidate its business activities. Renaults owns 43.4 percent of Nissan while the Japanese brand also owns a 15-percent stake in Renault – there have been rumors in recent months that the two companies were looking at ways in which they could deepen their relationships with each other.

When asked if a merger between the two entities could be completed this year or next, Ghosn reportedly responded by saying "I don't think so."

Ghosn is reportedly in charge of negotiations between both companies, and presumably answering to himself in both scenarios. A merger of the two companies would see shareholders from both Renault and Nissan receive stock in the newly formed company.

Following a merger, it is unknown whether one of either the Nissan or Renault names will be retired, or if they will continue to exist together in a Jaguar Land Rover-style arrangement, which is rumored to be the most likely option. The newly formed company is expected to maintain headquarters in both Japan and France, although a single head office in either the UK or the Netherlands is also said to be a distinct possibility.

Any potential merger could prove to be very difficult, as the move would have to be approved by both the French and Japanese governments before it goes ahead. The French government, which remains a part owner of Renault with a 15-percent stake, is thought to be unhappy at the prospect of reducing its influence on the company.

Source: motor1.com