What Does Renault Think Of Nissan’s Planned Merger With Honda?

Just days after Honda, Nissan, and Mitsubishi sent the automotive world into a collective “wait, what?” moment by announcing their intention to merge into a single entity, the Renault Group—Nissan’s largest shareholder— has weighed in on the proposal to form what could become the world’s third-largest automotive conglomerate.

Renault currently holds a direct 17% stake in Nissan, along with an additional 18.7% through a French trust. Despite being Nissan’s largest shareholder, there’s been no mention of Renault’s involvement in the proposed tie-up with Honda.

Renault’s Cautious Response

In a statement shared online, Renault announced that it is considering all options and will prioritize what’s best for its shareholders.

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“Renault Group acknowledges the announcements made today by Nissan and Honda, which are still at an early stage,” it said. “As the main shareholder of Nissan, Renault Group will consider all options based on the best interest of the Group and its stakeholders. Renault Group continues to execute its strategy and to roll-out projects that create value for the Group, including projects already launched within the Alliance.”

Read: Honda And Nissan Confirm Merger Talks To Form World’s 3rd Largest Automaker By 2026

That doesn’t tell us much about what the future holds for the Renault-Nissan-Mitsubishi alliance. However, while former Nissan and Renault boss Carlos Ghosn was speaking with Bloomberg earlier this week, he suggested that Renault will likely try to maximize the value of its share in Nissan.

The Japanese marque’s share price has taken a beating this year, so it would make sense for Renault to support the deal if it believes it could benefit Nissan’s share price. Ghosn indicated that Renault may be willing to sell its share of Nissan to Honda “without any doubt.”

Ghosn also offered an intriguing take on how the potential merger came about. He believes that Honda wasn’t initially keen on merging with Nissan but may have been pressured into the decision by Japan’s Ministry of Economy, Trade, and Industry (METI).

“Having lived in Japan for so many years I understand how influential the METI can be,” explained Ghosn. “In my opinion, there is no industrial logic to it, but there is a moment when you have to choose between performance and control. Obviously, if you can have both, it’s better. But there are moments when you have to choose, and without any doubt, with METI and everything I know from it, they prefer control over performance. So they pushed Honda into the deal, without any doubt.”