Nissan Chief Denies Capital Tie-Up Review Talks with Renault

Economy

Tokyo, Jan. 21 (Jiji Press)--Nissan Motor Co. <7201> President Hiroto Saikawa denied Monday that the major Japanese automaker is in talks with French alliance partner Renault SA to review their capital relationship.

"We're not at a stage to discuss such a matter yet," Saikawa told reporters.

Saikawa declined to comment on a reported proposal for the two companies' merger by the French government, the largest shareholder of Renault, saying, "I've heard nothing about it."

Renault owns 43.3 pct of Nissan shares, while Nissan holds a 15 pct stake in the French automaker. Nissan has been trying to rectify the unequal capital tie-up that does not allow it to gain voting rights in Renault.

Meanwhile, Paris has demanded that Nissan strengthen its alliance with Renault by taking such a step as management integration.

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