Renault is expected to hold a board meeting as early as this Tuesday to discuss a merger proposal set fourth by Fiat Chrysler Automobiles. The proposal was submitted to Renault last week by FCA with the next steps resting on Renault’s response.
Japanese publication Nikkei reports the Renault board of directors will meet this week and likely participate in a joint press conference with Fiat Chrysler to discuss a go-forward plan. The plan is likely to include the two entities entering into a memorandum of understanding to formally negotiate terms of a merger of the two automakers.
In an interview with Nikkei last Thursday Renault Chairman Jean-Dominique Senard stated the proposed merger is the “best way to implement [Renault’s] strategy.”
While the French automaker’s Chairman may be on-board with the deal, Renault’s largest shareholder is the French government. The government has already requested the company make job guarantees to maintain a certain level of industry jobs in its home country.
Renault’s alliance partner Nissan has also shown some hesitation to jump on-board with the merger plan. Renault owns 43 percent of Nissan, while Nissan owns 15 percent of Renault. While Nissan would likely benefit from the merger in terms of added scale of the alliance, it could also push the Japanese automaker further to backseat; sentiments it has already felt with the current alliance.
Regardless, it appears Renault will be making headlines later this week with regards to Fiat Chrysler’s offer.