Mitsubishi, Nissan, and Renault Dismiss Reports of Buy Out of French Government Stake

Photo by Brian Snelson/Flickr

Mitsubishi, Nissan, and Renault have dismissed reports that Nissan is currently participating in discussions to acquire the stake of the French state in the domestic car dealer.

At the close of the markets today, the shares of Renault were up by 5.64 percent at €94.44, after some speculations arised that Nissan was looking to acquire the 15 percent share of the government of France in Renault, in a move that was lauded as a precursor to a potential merger.

A spokesperson for Renault-Nissan-Mitsubishi stated: “As announced last week by Carlos Ghosn, chairman and CEO of Renault-Nissan-Mitsubishi, the Alliance is exploring deeper synergies and increased operating convergence, but has no plans to change the cross-shareholding ratio of its member companies.

“Any discussion about a share transaction involving Renault, Nissan or the French State is pure speculation.”

Any kind of sale of the stake of the government in Renault would be politically sensitive given the past socialist narrative of the government, which saw it acquire a 23 percent stake in the company in 2015 to ensure the success of ‘long-term capitalism’.

The said stake later slashed the current 15 percent last year, after Emanuel Macron, the President of France, vowed to divest of the shares on assuming office.