FCA had proposed locating the combined group's operational head office in a neutral city, most likely London, but has now indicated readiness to base it in the greater Paris area, meeting a key French government demand, both sources said.
The French government is also likely to be granted a seat on the board to reflect its 7.5% stake in the merged company, they said. Nissan, whose matching 15% stake in its French alliance partner will also be diluted to 7.5% of the new group, receives a board seat under the plan unveiled on May 27. Guarantees to maintain Renault's French blue-collar jobs and industrial sites would also be extended to four years from the two initially proposed under the compromise being discussed, the sources added.
Both France's pro-business government and Italy's populist administration back the merger in principle, but fraught relations between the two could yet derail the deal if one side feels disadvantaged.
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