Key Meetings May Revive Renault, FCA Merger Talks

Whether Renault and Fiat Chrysler Automobiles revive merger talks will hinge on the outcome of two meetings this week over Nissan’s view of the deal, The Wall Street Journal says.

FCA withdrew its short-lived overture early this month, barely two weeks after making it. The company cited frustration over French government demands, coupled with Nissan’s wariness over the deal’s impact on the 20-year-old Renault-Nissan alliance. Nissan hold a nonvoting 15% stake in Renault.

Sources tell the Journal that the leaders of all three companies remain open to reviving the merger talks. The challenge will be minimizing conditions imposed by each of the players that could kill the discussion.

The first critical meeting will occur tomorrow, when Nissan’s shareholders are expected to approve sweeping reforms in the company’s governance and board structure.

The changes will give independent directors a majority on the company’s board. The power shift could make the board more willing to consider a Renault-FCA merger on its own strategic grounds rather than fret over its effect on the troubled Renault-Nissan partnership, the Journal says.