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Renault said to be seeking a merger with Nissan

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Nissan CEO Hiroto Saikawa rejected a request earlier in April by Renault chair Jean-Dominique Senard to reconsider a merger, people familiar with the matter have said

Nissan president and CEO Hiroto Saikawa speaks during a news conference at the company headquarters in Yokohama, south of Tokyo, Japan, on November 19 2018. File photo: REUTERS/ISSEI KATO

“What we always said, and we still say the exact same thing, is that what we want is the alliance to be irreversible,” Renault CFO Clotilde Delbos said Friday on the company’s first quarter conference call when asked about its plans. “This is what we are pursuing collectively with Nissan.” Renault shares advanced as much as 4.3% on Friday, and had risen 2.7% to €61.18 as of 4.55pm in Paris. That would give the French car maker a market value of €18.1bn, compared with Nissan’s ¥3.77-trillion .

Both companies are struggling. Nissan this week said it will miss its annual profit goal, and Renault on Friday reported a drop in first-quarter sales. Car makers have been contending with a decline in China, the world’s biggest market, and a broader slowdown elsewhere, while a shift toward electrification is placing huge demands on investment capital.

 

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