Although it was planned to be on vote early this week the possible FCA-Renault merger has faced some obstacles.
First it was French Government. They wanted 1 seat on any new Board, with 4 years long guarantees for blue collar French jobs, French CEO of a new combined company in duration of 4 years with veto right on nominee, and on top of that paying an extraordinary dividend to Renault shareholders.
It seems that FCA Chairman John Elkann has weathered this storm and came to a deal with French Government. He fulfilled some French demands but for some he managed to renegotiate. Thus French Government will have 1 seat on Board but it will not be an extra seat and will come from 1 out of the 4 Renault’s seat on a new Board. CEO nomination will come from a special committee made by 2 FCA members and 2 Renault members which will be taken by French Government with no veto right. Extraordinary dividend will also be renegotiated with the high possibility that there will not be a one for Renault shareholders while one promised for FCA shareholders worth 2.5 billion euros will be reduced.
After all this was negotiated, voting was scheduled for Tuesday night. All of suddenly this was postponed for Wednesday night with no further explanation.
First thought’s was about some new rift between FCA and French Govermant but it seems that’s not the case although both French and FCA has said that they would stay awake the whole night if necessary to reach a deal.
It seems now though that Nissan is the one which is opposed to this deal. They have 2 man on the Renault Board and although they are minority they may cast a vote against a merger.
We are hopping that his saga will be finalized today and that merger will be approved by Renault Board.