Renault shares jump after Nissan merger report

Renault shares jump after Nissan merger report

Shares in French car maker Renault have jumped 5.4% at the opening of trading after a report that it is in merger talks with Japanese car giant Nissan.

Bloomberg reported that the companies are discussing becoming one entity with a single stock.

The companies have been in a strategic alliance since 1999.

Asked about the report, a spokesman for Renault-Nissan said: “We do not comment on rumours and speculation.”

Earlier in March, Reuters reported that Renault and Nissan were discussing plans for the Japanese carmaker to buy most of the French state’s 15% Renault holding.

The alliance between the firms includes sharing engines and building smaller vehicles on a common architecture.

Japanese car firm Mitsubishi is also part of the alliance.

In 2016, Renault, Nissan, and Mitsubishi had combined sales of 9.96 million – which was one in nine of all vehicles sold worldwide.

The alliance had the fourth largest number of sales in 2016 behind Volkswagen Group, Toyota, and General Motors.

Source: BBC News

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