Rumour: Renault to merge with Nissan, might buy Fiat-Chrysler

According to a media report, Renault will restart merger talks with Nissan within the next 12 months and are looking to acquire another car company, which might be Fiat Chrysler Automobiles (FCA).

The Renault-Nissan-Mitsubishi alliance sold 10.76 million units, while FCA sales amounted to 5 million vehicles in 2018.  The combined entity could take on the likes of the Volkswagen Group and Toyota.  It is also reported that former Chairman Carlos Ghosn had initiated talks about the merger couple of years ago, but the French government, that holds a 15% stake in Renault, shot down the proposal.

John Elkann, chairman of FCA, is reportedly looking for deals to strengthen the carmaker. Elkann has reportedly met rivals including Groupe PSA to explore a potential deal. With the Jeep and Alfa Romeo brands, FCA has a market capitalisation of over Euro 20 billion. Meanwhile, the Renault-Nissan-Mitsubishi alliance is valued at Euro 50 billion.

It is also reported that all the 3 carmakers are expected to announce a new plan by the end of this year with revised targets to sell 14 million vehicles (combined) by 2020. The companies would also have a reshuffle of their boards with Nissan adding outside directors and Renault reducing the size of its board.

Source: Financial Times