FT: Renault Looking To Merge With Nissan And Buy Fiat Chrysler

(RTTNews) - French automaker Renault SA (RNSDY.PK, RNSDF.PK, RNT.L) is looking to restart merger talks with Japanese automaker Nissan Motor Co. Ltd. (NSANF.PK, NSANY.PK) within twelve months and then acquire Fiat Chrysler Automobiles N.V. (FCAU) among the preferred targets, the Financial Times reported Wednesday, citing several people familiar with Renault's plans.

According to the FT report, the planning is a new strategy after the arrest in Tokyo of Carlos Ghosn, former chief executive of Renault and chairman of Nissan, in November for financial misconduct. The French and Japanese automakers have said that their primary focus in on making their alliance work well before making any changes to the capital structure.

The combined company would then pursue a further acquisition, possibly wit Fiat Chrysler or FCA, to compete with the likes of Volkswagen and Toyota, the FT reported.

Citing two people familiar with the matter, the FT reported that Ghosn held talks regarding a merger of Renault with FCA a couple of years ago, but the proposal was abandoned after opposition from the French government.

According to the report, FCA itself is actively seeking a partnership or merger, with chairman John Elkann having met several automakers, including France's PSA.

Renault confirmed earlier in March that it is in talks with its Alliance partners Nissan and Mitsubishi Motor Co. Ltd. (MMTOF.PK) regarding the establishment of a new Alliance body. The company added that the discussions have not yet led to a definitive agreement.