Yesterday, the announcement that Honda, Nissan, and Mitsubishi would merge made waves in the automotive world. So, what did Renault, the largest shareholder and alliance partner of Nissan, say about this merger?
The announcement that the three Japanese automakers, Honda, Nissan, and Mitsubishi, would merge shocked the automotive industry. Following this statement, the thoughts of Renault on this merger became a topic of curiosity. As is known, the French manufacturer is in an alliance with Nissan and Mitsubishi. Renault also holds a direct 17% stake in Nissan and an additional 18.7% through a French trust, making it the largest shareholder.
Renault issued a statement, indicating that it was considering all options and would prioritize what is best for its shareholders.
"Renault Group acknowledges the announcements made today by Nissan and Honda, which are still in the early stages. As the main shareholder of Nissan, Renault Group will assess all options according to the best interests of the group and its stakeholders. Renault Group will continue to implement its strategy and move forward with projects that create value for the group, including those already initiated within the alliance."
This statement does not reveal much about the future of the Renault-Nissan-Mitsubishi alliance. However, former Nissan and Renault CEO Carlos Ghosn speculated earlier this week in a Bloomberg interview that Renault would likely try to maximize the value of its stake in Nissan.
With Nissan's stock prices having fallen significantly this year, it would make sense for Renault to support the deal if it believes it could benefit from Nissan’s share prices. Ghosn also suggested that Renault might be willing to sell its Nissan shares to Honda without hesitation.
Ghosn also provided an interesting explanation regarding how the merger might have occurred. He claimed that while Honda initially hesitated to merge with Nissan, it might have been pressured into the decision by the Ministry of Economy, Trade, and Industry (METI) of Japan.
"As someone who has lived in Japan for many years, I understand how influential METI can be. In my view, there is no industrial logic behind this deal, but at some point, you have to choose between performance and control. Of course, having both would be ideal, but there are moments when you need to make a choice, and based on my knowledge of METI and its influence, I can confidently say that they preferred control over performance. Therefore, there's no doubt they forced Honda into this merger."
