Renault Seeks to Maximize Nissan Stake Value Ahead of Honda Merger

Credit: Renault

Renault executives traveled to Japan this week to meet with Nissan counterparts in an effort to maximize the value of the French automaker’s stake in Nissan ahead of a potential merger between Nissan and Honda, a source close to the matter told Reuters.

Nissan and Honda announced late last year they would begin formal talks on a merger, which could create the world’s third-largest auto group with an annual output of 7.4 million vehicles. Renault, which owns 36% of Nissan, including 18.7% held in a French trust, has said it is open to the merger.

See also: Mitsubishi and Nissan to Establish Joint Venture for Autonomous Driving Technology

However, Renault is pushing Nissan to negotiate a higher premium from Honda, as Honda is expected to take control of Nissan in the merger, according to a Financial Times report, which first disclosed the trip.

A Renault spokeswoman declined to comment on any proposal for a control premium. Nissan Europe said it could not immediately comment, while Honda did not respond to a Reuters request for comment.

Renault and Nissan overhauled their more than 20-year alliance in 2023, rebalancing their cross-shareholdings and refocusing on a limited number of projects and geographies.

See also: Mitsubishi Motors Considers Withdrawing from Merger Talks with Nissan and Honda 

Honda and Nissan aim to reach a definitive merger agreement for a holding company by the end of June, including finalizing the merger ratio, the Financial Times reported.

The potential merger between Nissan and Honda could significantly reshape the global automotive industry, with Renault’s stake in Nissan playing a key role in the negotiations.

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