Nissan, Japan Reject Merger Overture From Renault Chief, FT Says

(Bloomberg) -- Nissan Motor Co. and the government of Japan have spurned efforts by Nissan’s French partner, Renault SA, to engage in merger talks, the Financial Times reported.

Relations between the partner companies, already tense because of the arrest of former alliance leader Carlos Ghosn in Japan, have hit a new low after the latest snubs, the FT reported, citing a person familiar with the situation. Ghosn had been seen as guiding the companies toward a merger when he was charged last November with financial misconduct at Nissan.

Tensions rose after a dinner in Paris in mid-April where Nissan Chief Executive Officer Hiroto Saikawa told Renault CEO Thierry Bollore and Jean-Dominique Senard, the French automaker’s chairman, that Nissan wasn’t interested in a full merger at this point, the FT reported.

Under the proposal, each company would own about a 50 percent stake in the holding company and have equal board representation, a person familiar with the plan told Bloomberg News last week, asking not to be named discussing confidential deliberations. The entity would be headquartered outside France or Japan, possibly in Singapore, the person said.

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