Carlos Ghosn arrested, Nissan takes a breather

Union of car manufacturers shaken

Carlos Ghosn has planned a corporate merger between Renault and Nissan before being arrested in Tokyo this week. A proposal that the Japanese car maker would most likely have opposed and rejected.

According to Nissan's board of directors, the expectations were that, within a few months, a formal offer and bid price would be made. According to another source, the merger would take months, and third, that a merger is being considered.

Renault and Nissan have their own shares in a model and structure built more than 20 years ago. But Ghosn as President of the Car Manufacturers Association and Nissan's board of directors is planning a complete merger between the two partnerships that will never be broken.

On Monday, however, Nissan opposed Ghosn, claiming he would exclude him from the board of directors and accused him of misrepresenting investors for his remuneration by using the company's assets for personal gains and falsifying the company's financial statements.

Nissan's statement made it clear that for several months an investigation has been conducted after information has been submitted from an anonymous source.

Carlos Ghosn was the driving force behind the merger plans. Renault has a 43 percent stake in Nissan, which gives the company unusual control capabilities and, above all, the ability to elect presidents and performers. Nissan, with their 15 per cent Renault, does not even give them the right to speak, not to mention control rights over their French partner. For some time, the relationship between the two contractors Ghosn and Hiroto Saikawa has been exacerbated.

Nissan's shares fell by about 5.5 percent, while Renault also fell in price, remaining under the strong pressure of news and under the control of vendors.

Source: Financial Times

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