Renault said to woo Nissan with joint holding company proposal

Renault is to propose the creation of a joint holding company to Japanese partner Nissan, according to a report from Japan's Nikkei newspaper on Friday.

The report, which did not cite a source, stated that the holding company's board would be populated by nearly equal numbers of directors nominated by each partner and would be used to transfer ordinary shares in the car makers on a balanced basis.

The proposal is understood to be a modification of a merger deal from Renault that Nissan rejected earlier this month as Renault seeks to sure up the relationship between the two companies, which has been shaken by the November arrest of its former boss, Carlos Ghosn, for financial misconduct.

Investigations into Ghosn led to the disbanding of Renault-Nissan B.V, which used to oversee operations between the partners, after it appeared that the strategic management company had been involved in his misconduct.

Clotilde Delbos, chief financial officer of Renault, said: "What we want is for the alliance to be irreversible. This is what we're pursuing collectively with Nissan - that hasn't changed."

But executives at Nissan, which holds a 15% stake in the French car manufacturer, have opposed an all-out merger with Renault, which in turn holds a 43% stake in its Japanese partner, instead arguing for a more equal footing.

Renault's shares were up 2.97% at €61.33 and Nissan's shares were up 0.49% at JPY893 at 1227 BST.