Renault board stalls vote on FCA merger as Nissan puts up resistance
Groupe Renault has stalled its decision on a merger with Fiat Chrysler Automobiles after its partner Nissan showed resistance to the deal.
Directors from the companies involved have been meeting to discuss a 50/50 merger proposal between the two major automotive groups.
However, Renault directors want to “continue to study with interest the opportunity of such a combination and to extend the discussions on this subject” because Nissan, which has been a long-time partner of the French firm, is withholding its support.
Citing sources close to the deal, Automotive News Europe says the draft contains requests on governance and jobs from the French state, which is Renault’s most powerful stakeholder. It also considers a possible payout of approximately €2.5 billion (circa £2.2bn) to Renault shareholders.
The publication says it was told that “it’s possible that a decision to move forward will be reached Wednesday”.
Earlier this week, Nissan chief executive Hiroto Saikawa said the Japanese manufacturer would have to re-evaluate its 20-year deal with Renault because of the FCA merger. This complicated proceedings because the French government wants the arrangement with Nissan to remain as part of the tie-up.
Renault directors are scheduled to hold another meeting with FCA bosses tonight.