Renault is seeking to maximise the value of its stake in Nissan as the Japanese automaker moves forward with its proposed merger with Honda, sources reveal.
The French company, which holds a 36% stake in Nissan, is reportedly urging Nissan to negotiate a higher premium from Honda before finalising any deal.
According to the Financial Times, Renault executives travelled to Japan this week to engage in discussions with Nissan counterparts.
The move suggests Renault wants to ensure it secures the best possible return on its investment before Nissan potentially transitions to a Honda-controlled entity.
What's happening with Honda and Nissan?
Late last year, Honda and Nissan confirmed they had entered formal merger discussions, a deal that could form the world's third-largest automotive group, with a combined annual output of 7.4 million vehicles.
However, Renault’s involvement introduces a layer of complexity that could delay or reshape the agreement.
Renault has expressed openness to the merger but is pushing for Nissan to extract more favourable terms from Honda. The Financial Times further reports that Honda is expected to take control of Nissan, making Renault’s concerns over its stake valuation all the more critical.
What this means for the merger
Both Nissan and Honda are targeting a definitive merger agreement by June 2024, with the finalisation of the merger ratio being a key aspect of the discussions.
If Renault successfully pressures Nissan to demand a higher valuation, it could either lead to an increased buyout price from Honda or a more contentious negotiation process.
At present, Nissan Europe has declined to comment, and Honda has yet to respond to media requests. A Renault spokeswoman also refrained from commenting on the potential control premium.
With Honda and Nissan looking to consolidate their operations to better compete against Chinese automakers and rising EV costs, Renault’s intervention may either help Nissan secure a better deal - or become a roadblock to the merger’s progress.