Renault SA will propose to Nissan Motor Co a plan to create a joint holding comp...
TOKYO - Renault SA will propose to Nissan Motor Co a plan to create a joint holding company which would give both firms equal footing as the French automaker seeks further integration with its Japanese partner, the Nikkei newspaper reported on Friday.
This would effectively dilute the stake held by the French government in Renault to around 7 to 8 percent, from its current 15 percent, it added. The new company would be headquartered in a third country, such as Singapore. Earlier this week, the Japanese automaker slashed its profit forecast for the year just ended to its lowest in nearly a decade, citing weakness in its U.S. operations.
Instead, Nissan has argued for a more equal footing with Renault, which holds a 43 percent stake in its bigger partner. Nissan holds a 15 percent stake in Renault.
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