Rumour: Nissan, Renault to merge into single company

The Nissan Motor Company and Renault SA are reportedly in talks to merge into a single entity. Negotiations for a possible merger are currently on, headed by Carlos Ghosn, Chairman of Renault and Nissan.

The Renault-Nissan alliance was formed in March 1999. The French automaker currently has 43% stake in Nissan, while the Japanese carmaker owns 15% in Renault. The French government also has a 15% stake in the company. Reports suggest that the Nissan would give Renault shareholders stock in the newly formed company. Nissan shareholders would also receive shares in the merged entity in exchange for their holding. That said, the French government might pose a hurdle to Carlos Ghosn's plans.

Apparently, negotiations have been going for several months, however neither of the stakeholders have confirmed the recent reports. It has been reported that a merger would form a company larger than Volkswagen AG or Toyota Motor Corporation and might have headquarters in Japan and France. 

In January 2018, Renault-Nissan overtook Volkswagen to become the world's largest carmaker in terms of sales. In 2017, Nissan sold 5.82 million vehicles globally, while its partner Renault dispatched 3.76 million units. Alliance partner Mitsubishi sold 1.03 million units taking the group's annual sales tally to 10.61 million units.

Source: Bloomberg