Renault asks the State to preserve the balance of the Alliance – Echoes

Both sides are standing their ground while playing the card of appeasement.

Cease fire? At the end of a board of extraordinary administration, Renault’s directors maintained their positions while leaving the door open for appeasement, via a press nuanced. The Board assumes the vehicle manufacturer indeed conflict with the state, which owns 15.3% of its capital. Renault continues to support the resolution number 12, which set fire to the powder, which will be presented to the shareholders at the General Meeting of April 30 group.

Supporting the principle of “one share, one vote”, this resolution is to override the Florange law, preventing the state’s long-term manufacturer shareholder, obtain double voting rights. Alas, while the government remains committed to the law and has to impose its views, initiated a climb to Renault’s capital, which will allow it to hold, by 30 April, up 19.7% capital, chances for the Renault board to see his pass resolution are slim. In this context, the manufacturer wants the state is positioned to prevent any significant influence outlet. The Renault board of “demand that the balance between the two main Renault shareholders is held at the next general meeting or restored after it,” the statement yesterday.

The ball is in the court of the State

While Nissan holds 15% of Renault’s capital, but without any right to vote, the Japanese ally sees indeed a bad eye the potential strengthening of the state, especially as he has just tasted the way. Besides the Japanese manufacturer generates most of Renault’s profits for several years and it weighs twice as the stock market. Thursday, Nissan representatives from the rest reported their concerns to the strengthening of the state.

So the ball is in the government camp. Thursday, it made sure to clear the field. The balance of the Renault-Nissan Alliance “will be fully preserved by the state,” said Emmanuel Macron, the Minister of Economy. Earlier in the day, he had stated that the shares acquired by the State “will be sold immediately after the General Assembly” of 30 April. It remains to see if it is to return to a 15% with double voting rights, gradually acquired from 2016. Or if it is to go below and have a level of equivalent effect to today with investments in much lower capital.

Above all, it is about seeing if both parties speak much the same language when they mention preservation of the balance of the alliance. Some within the state, this balance does not necessarily based on capitalistic aspects: “Nissan can not exercise its voting rights since the beginning of the Alliance even when the state had more than 25% of Renault. “ Carlos Ghosn and other Renault directors have the same reading? Or will they decide to cross swords in ensuring that Nissan has voting rights within the French manufacturer.