French prime minister says government does not want Renault-Nissan merger

The French government has announced that it does not want a merger of Nissan and Renault.

Prime minister Manuel Valls spoke out after Renault held an emergency board meeting on Friday, following reports the government, which is a major shareholder, did want a merger.

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

Nissan owns a 15% stake in Renault, while the French company has a 43% interest in the Japanese car-maker.

Speaking on Friday, Nissan's chief competitive officer and a director at Renault, Hiroto Saikawa, said the situation had "highlighted an imbalance in the Renault-Nissan alliance".

He continued: "Nissan would like to put this matter behind us as soon as possible so that we can re-establish the foundations of a successful alliance and focus on our real business."