Renault to propose joint holding company with Nissan

TOKYO: Renault SA will propose to Nissan Motor Co a plan to create a joint holding company which would give both firms equal footing as the French automaker seeks further integration with its Japanese partner, the Nikkei newspaper reported on Friday.
Under the proposal, both firms would nominate a nearly equal number of directors to the new company in which ordinary shares in both Nissan and Renault would be transferred on a balanced basis, the newspaper said without citing sources.
This would effectively dilute the stake held by the French government in Renault to around 7 to 8 per cent, from its current 15 per cent, it added. The new company would be headquartered in a third country, such as Singapore. Renault plans to make the proposal to Nissan soon, the Nikkei said, having modified an earlier merger idea which Nissan rejected on April 12. Nissan declined to comment on the issue. — Reuters