Tue, 03 Apr 2018 | MERGER
Shares in French car manufacturer Renault have surged 5.4 per cent following the release of a report that suggests the firm is negotiating a merger with Nissan with a view to creating a global automotive giant.
The businesses originally formed a partnership around two decades ago, subsequently saving the firms around €5 billion each year. However, the new merger between the French automotive leaders is predicted to double these savings by the year 2022.
According to the report from Renault, many of these savings are associated with the sharing of technology, including engines and common vehicle architecture. An example of this can be seen in the Nissan Leaf and Renault Zoe, electric cars that have been produced based on the same foundation design. Japanese car firm Mitsubishi is also a part of the current alliance between the car manufacturers.
Following the announcement of the merger, shares in Renault jumped by almost eight per cent based on the potential for the businesses trading as a single stock in the future.
The plan was reportedly proposed by Carlos Ghosn, chairman of the Renault-Nissan alliance and chief executive of Renault, who is set to remain in his post for the next four years and potentially oversee the transition.
The three-way merger has already resulted in combined sales of 9.96 million, placing them fourth in terms of number of vehicle sales in the global rankings.
However, critics have suggested that the merger could be risky for all companies involved. Professor Christian Stadler of Warwick Business School said: "Markets tend to be enthusiastic about big mergers. Rarely, however, do these mergers live up to expectations."
The company specialises in producing furniture from a wide array of materials, allowing it to act as a one-stop shop for private and commercial clients. Operating nationally, the company caters to 20 active industrial and commercial clients, all of...
LEASEHOLD
Label printing and over-labelling services provided to blue chip clients, predominantly in the food sector.
LEASEHOLD
The assets and intellectual property of disability equipment supplier have been put up for sale after the company appointed liquidators. The company developed a range of products used to regulate the temperature and moisture levels of people who use...
LEASEHOLD
31
|
Jan
|
Administrators still hope to find buyer for gin firm | ADMINISTRATION
Administrators from Begbies Traynor say they still hope to f...
31
|
Jan
|
Grade-II listed York city centre hotel up for sale at £3m | COMMERCIAL PROPERTY
The Judges Court Hotel in York has been put up for sale, wit...
30
|
Jan
|
Bakery manufacturer acquired at 6.3x underlying earnings | BUSINESS SALE
Bakery firm Lees Foods has been acquired by listed bakery bu...
Sign up to receive our acquisition alert emails to get your FREE guide
19
|
Feb
|
Welsh car dealership goes into administration | ADMINISTRATION
A Wales-based car dealership has announced that three of its...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources