FCA-Renault: possible resumption of negotiations

FCA may resume negotiations for the merger with Renault, abandoned abruptly after the hesitancy of the board of directors of the French manufacturer, which had asked for a postponement before the all-clear.

According to reports from a confidential source of information to Reuters, the two sides could resume the talks on the level of aggregation , provided that the change in the ownership structures between the Régie and the partner of Nissan. It seems that to get the go-ahead from Tokyo, Renault has been asked to reduce stake in Nissan, which is currently to 43.4%. Another condition that would be on the table, would be that the French government cuts its stake in Renault, to date of 15.1%.

Last may 27, the FCA had announced the proposed merger of Renault, retired on the night of June 6, after the second postponement on the decision by the board of directors of the French. In 14 of the 17 elements that make up the council, the French would be expressed favorably to the alliance, while three would have been abstentions, including the two representatives of the japanese House.

In the face of the perplexities of the asian partners, the French government would have asked for a further postponement, which the FCA has interpreted as not viable, by stating how there were no more the “political conditions” to bring the agreement.

The next day, the French finance Minister Bruno Le Maire had explained that they had been asked the other five days to “get the explicit support of Nissan”. Paris would have wanted a little more time to “ensure the support of all the stakeholders”. One slip, however, is not granted by the Group led by John Elkann, and Mike Manley.

The maintenance of good relationship with Nissan is, in fact, vital for the Renault and, on reflection, it would be even for an FCA merged with the House beyond the Alps. According to analysts, the ¾ of the future range of the Diamond should be made with the technologies implemented within the alliance franco-japanese, which would benefit from even Fiat-Chrysler in the event of a merger.