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French PM says government does not want Nissan/Renault merger

Published 08/11/2015, 10:25
© Reuters. Ghosn, CEO of the Renault-Nissan Alliance, speaks to the media as he stands next to Renault's new Kwid car during its launch in Chennai
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PARIS (Reuters) - French Prime Minister Manuel Valls said on Sunday the French government did not want a merger between car makers Renault (PA:RENA) and Nissan (T:7201).

"We do not want a merger," Valls said in an interview on French iTele TV channel, adding that he wished to see the alliance between the French and the Japanese company endure.

"The state is fully playing its role as a shareholder... And at the same time, we fully trust Nissan and Renault managers in a dialogue that is normal," Valls said.

Renault owns a 43.4 percent controlling stake in Nissan, which holds a non-voting 15 percent of Renault. Carlos Ghosn, 61, serves as CEO of both car makers.

Reuters reported this week that French economics minister Emmanuel Macron has been pressuring Ghosn to undertake a full Renault-Nissan merger on French government's terms.

The French government raised its Renault stake in April to 19.7 percent from 15 percent secure double voting rights.

© Reuters. Ghosn, CEO of the Renault-Nissan Alliance, speaks to the media as he stands next to Renault's new Kwid car during its launch in Chennai

Nissan has expressed concern over the government's move and in September drew up confidential proposals to end Renault's control by acquiring a bigger stake in its French parent, Reuters reported.

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