Renault reactivated conversations with Foxconn about selling its participation in Nissan. The information is from the newspaper Financial Times.
The decision comes after the collapse of the merger negotiations between Nissan and Honda, which generated concerns about the possibility that Renault has devalued actions from Nissan, which currently does not have a new strategic partner.
According to the newspaper, sources close to the subject indicate that Renault is looking for investors around the world, including major technology names such as Apple.
Since 2023, Renault has reduced its participation in Nissan, amid a restructuring of the 25 -year alliance among automakers.
Currently, Renault owns 36% of Nissan, with 18.7% of this participation maintained in a French Truste that the automaker wants to sell.
Negotiations with FoxConn were driven by a meeting between Jun Seki, Foxconn executive, and Renault CEO of Meo in December, which would have caused panic within Nissan.
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In a statement, Renault said it is “evaluating all options” and will vigorously defend the interests of the group and their stakeholders. The priority, according to the company, is Nissan’s recovery.
Nissan’s shares rose more than 7% after the disclosure that Foxconn President Young Liu had instructed Seki to connect with Renault.
However, even if Renault is open to the sale of its actions at Nissan, the Japanese automaker has the right of preference, which can make it difficult to achieve the business without its consent.
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To the Financial Timesa banker involved in automotive negotiations commented that Renault “wants to play an active role in the situation,” noting that the company is divided between selling and recovering capital or continuing involved with Nissan.
Nissan, in turn, is also looking for a strategic partner in the technology sector after deciding to end conversations with Honda to create the fourth largest automaker in the world.
Negotiations with Honda failed when the Japanese automaker required Nissan to accept a new agreement to become an integral subsidiary, changing the initially agreed structure of a joint holding.
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Nissan faces financial pressure due to competition from Chinese rivals and lack of competitive product offerings, and plans to cut 9,000 jobs and one fifth of its production capacity as part of its recovery efforts.
