Renault launches new Nissan integration bid - Nikkei Asian Review

TOKYO -- Nissan Motor is poised to reject a management integration proposal from French alliance partner Renault, instead calling for a more equal capital relationship, sources familiar with the matter told Nikkei on Monday.

Renault, which relies on Nissan for revenue and technology, has long sought to make the ties between the automakers irreversible. The latest overture, made in mid-April, was the first since Jean-Dominique Senard became chairman of Renault and came just weeks after he said integration was not on the agenda.

Senard took over following the exit of Carlos Ghosn, who led both carmakers but is now facing allegations of misconduct in Japan. Nissan's stance raises questions about the companies' stated intentions to maintain a cooperative relationship.

In its proposal, Renault argued that an integration would maximize synergies within the French-Japanese alliance, which also includes Japan's Mitsubishi Motors. Nissan's management, however, feels the company has not been treated as Renault's equal under the existing capital ties and fears a merger would make that inequality permanent, the sources said.

The companies hold shares in each other, but Renault's holdings in Nissan total 43.3% -- nearly three times what Nissan owns in Renault. Nissan's shareholdings in its partner do not carry voting rights. Senard said in March that the companies were not currently discussing reworking the capital relationship.

Nissan executives believe Ghosn's emphasis on expansion hurt the automakers earnings. It appears they will reject Renault's proposal in part out of confidence that, with Ghosn out of the picture, they can now improve efficiency and enhance corporate value.

The latest push for integration did not come out of the blue. The French government, which is Renault's top shareholder with a 15% stake, informed Tokyo around mid-January that it would seek a management union under a holding company structure.

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