Renault intends to conclude talks with Japan's Nissan Motor Co Ltd within 12 months. resume. This is the first step on the road to creating a larger car conglomerate, with both companies bidding for Fiat Chrysler Automobiles, the Financial Times reports. According to the report, the takeover of Fiat Chrysler Automobiles NV will be planned.
The plans signal a return to the strategies supported by former Nissan boss Carlos Ghosn, who led talks to merge Renault with Fiat Chrysler two to three years ago.
Late last year, Ghosn was ousted as chairman of Nissan and arrested in Tokyo on financial misconduct charges for under-reporting his salary. Ghosn said the charges were "meritless".
The recent formation of a new alliance board led by Renault chief Jean-Dominique Senard has led to increased confidence that the two parties can now move ahead with merger plans, the FT report said. A combination of Renault, Nissan, Fiat and Chrysler can create a carmaker that better competes with global rivals such as Volkswagen and Toyota
Renault and Nissan bid for Fiat Chrysler Automobiles
Fiat Chrysler is also seeking a partnership or merger and the company is in talks with rivals to strike a deal. Renault and its partner are expected to reshape their boards, with Renault reducing the size of the board and Nissan adding a majority of outside directors, the report said.
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