Nissan to reject new integration proposal from Renault: Nikkei

By Maki Shiraki TOKYO (Reuters) - Nissan Motor Co Ltd will reject a management integration proposal from French partner Renault SA and will call for an equal capital relationship, the Nikkei newspaper said on Monday, citing sources.

Reuters April 23, 2019 00:05:22 IST
Nissan to reject new integration proposal from Renault: Nikkei

Nissan to reject new integration proposal from Renault Nikkei

By Maki Shiraki

TOKYO (Reuters) - Nissan Motor Co Ltd will reject a management integration proposal from French partner Renault SA and will call for an equal capital relationship, the Nikkei newspaper said on Monday, citing sources.

Nissan's management feels the Japanese company has not been treated as an equal of Renault under existing capital ties, and a merger would make this inequality permanent, the Nikkei said https://s.nikkei.com/2veityL.

The outlook for the alliance - one of the world's top automaking partnerships - has been in focus since the arrest in November of its main architect, Carlos Ghosn, for financial misconduct. The former Nissan and Renault chairman has denied the charges against him and has said he was the victim of a boardroom coup by Nissan executives opposed to closer ties.

Renault saved Nissan from the brink of bankruptcy two decades ago and under their current capital alliance, the French company holds greater control over its much larger partner.

Nissan Chief Executive Hiroto Saikawa declined to say whether the company had received such a proposal from Renault.

"Now is not the time to think of such things," he told a group of reporters outside of his house in Tokyo. "At the moment we are focused on improving Nissan's earnings performance. Please give us time to do that."

Renault declined to comment on the report.

Renault has argued in its proposal that an integration would maximise synergies within the French-Japanese alliance, according to the Nikkei.

The Financial Times reported last month of Renault's intention to restart merger talks with Nissan within 12 months.

The two companies said in March they would put themselves on more equal footing, breaking up the all-powerful chairmanship previously wielded by Ghosn.

The alliance between Renault and Nissan was first set up in 1999 and was expanded in 2016 to include Mitsubishi Motors.

Separately, Japanese prosecutors indicted Ghosn on Monday on another charge of aggravated breach of trust, the fourth charge against him, which his lawyers met immediately with a bail request.

(Reporting by Maki Shiraki in Tokyo;Additional reporting by Bhargav Acharya and Kanishka Singh in Bengaluru, Editing by Louise Heavens and James Emmanuel)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Hong Kong marks handover anniversary as national security law takes effect
World

Hong Kong marks handover anniversary as national security law takes effect

HONG KONG (Reuters) - Hong Kong authorities threw a security blanket across the city early on Wednesday, the 23rd anniversary of the former British colony's handover to Chinese rule, hours after new national security legislation took effect in the financial hub. The contentious law will punish crimes of secession, subversion, terrorism and collusion with foreign forces with up to life in prison, heralding a more authoritarian era for China's freest city.

Kentucky Democrats pick ex-fighter pilot McGrath to challenge U.S. Senate leader McConnell
World

Kentucky Democrats pick ex-fighter pilot McGrath to challenge U.S. Senate leader McConnell

By Susan Cornwell (Reuters) - Former fighter pilot Amy McGrath said on Tuesday she was ready to take on Senate Republican Majority Leader Mitch McConnell after edging out a Black progressive to clinch the Democratic nomination for the seat.

World shares end stellar quarter but still down in 2020
Business

World shares end stellar quarter but still down in 2020

By Rodrigo Campos NEW YORK (Reuters) - A global stocks index rose on Tuesday and marked its largest quarterly gain since 2009 as investors continued to look for signs of an economic recovery while shrugging off data showing a rising number of COVID-19 cases. The possible return of Libyan oil production, which has been at a trickle since the start of the year, weighed on crude prices. World shares rose 18.7% this quarter, the biggest quarterly gain in 11 years, but are still down more than 7% so far this year due to a slump of 34% between Feb.