Arrested Carlos Ghosn Was Planning Nissan-Renault Merger: FT

November 21, 2018

New York/Paris--Nissan Motor Co. <7201> Chairman Carlos Ghosn was planning a merger between the Japanese automaker and its French alliance partner, Renault SA, before he was arrested by Japanese authorities on Monday, the Financial Times has reported.

Ghosn saw the merger rendering the partnership "irreversible," but Nissan's board opposed the plan and sought ways to block it, the British business daily said, citing sources close to the board.

Ghosn was arrested for allegedly underreporting his pay in Nissan's financial statements.

Nissan claimed in a press release on Monday that it had also detected "numerous other significant acts of misconduct" by Ghosn, who doubles as chairman and chief executive officer of Renault.

French newspaper Le Monde has reported that there are suspicions in Renault management that the backdrop of Ghosn's arrest was an attempt within its Japanese partner to oust him.

The Japanese side was wary that the French government, a major shareholder of Renault, was seeking a Renault-Nissan merger to strengthen domestic industry, according to Le Monde. Jiji Press