RENAULT SA is open to Nissan Motor Co. pursuing merger talks with Honda Motor Co. as the French automaker seeks a way to insulate itself from the crisis plaguing its long-time alliance partner, according to people familiar with the situation. Renault is eager for the Japanese company to find ways to become stronger given it isn’t itself willing to inject cash into Nissan, said the people, who asked not to be identified discussing internal matters.
With a 36 percent stake, Renault remains Nissan’s biggest shareholder and its approval will be key to any agreement, the people said. While Renault is open in principle to a deal that can make Nissan stronger, it will closely evaluate any offer that’s made to the Japanese company with an eye to protecting its own interests, the people said. Nissan talks with Honda are still in the early stages, they said.Renault’s Nissan shareholding is a holdover from its longstanding alliance with Nissan and Mitsubishi Motors Corp. The two companies partially unwound their 25-year strategic partnership amid mounting rivalries and mutual suspicion. The looser ties opened up the possibility of alternative partnerships even as Renault and Nissan continue to work together on joint vehicle projects in India and Latin America. Once considered the alliance’s weak link, Renault leapfrogged Nissan in market value in April as investors rewarded it for accelerating the development of new models, returning to profit and inking new partnerships with technology companies such as Qualcomm Inc. Renault is the only major European automaker not to have issued a profit warning in recent months
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