Renault reactivates talks with Foxconn over sale of Nissan stake

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Renault has reactivated talks with Taiwanese iPhone contract manufacturer Foxconn regarding its stake in Nissan following the collapse of merger talks between the Japanese carmaker and its rival Honda.

Renault’s move to launch its own search for new investors came on the back of concerns that it would be left with depressed shares in Nissan, with the Japanese group lacking a new partner, according to people with knowledge of the situation. The search will be expansive with approaches to be made to technology groups worldwide including Apple, they added.

Renault has been reducing its stake in Nissan following a restructuring of the carmakers’ 25-year alliance in 2023. At present, it holds a 36 per cent stake in Nissan, including a remaining 18.7 per cent held in a French trust that it wants to offload.

Jun Seki, chief strategy officer for Foxconn’s electric vehicle division and a former Nissan executive, met Renault’s chief executive Luca De Meo in December for talks about acquiring the shares held in the trust, triggering panic within Nissan and frantic negotiations with rival Honda that fell apart earlier this week.

“There is no need to defend against Foxconn. They should at least be considered [as a potential partner],” said one person close to the discussions.

In a statement, Renault said it was “assessing all options” and that it would “vigorously defend” the interests of the group and its stakeholders. “Today, the priority is Nissan’s turnaround,” it added.

Shares in Nissan rose more than 7 per cent on Friday following a media report that Foxconn’s chair Young Liu instructed Seki to connect with Renault.

Foxconn did not immediately respond to a request for comment. Nissan declined to comment.

But even if Renault is open to selling its shares in Nissan, the Japanese group has the first right of refusal so it would be difficult for the sale to materialise without its agreement.

One banker involved in automotive deals said Renault “wanted to play an active role in the situation”, adding that it was torn between the idea of selling and recouping cash or remaining involved with Nissan. “They are not in a rush,” he said.

Nissan is also conducting its own search for a strategic partner in the tech industry after its board decided to end talks with Honda to create the world’s fourth-largest carmaker.

The discussions fell apart after Honda demanded that Nissan accept a new offer to become a fully owned subsidiary, deviating from the initially agreed structure of a joint holding company.

Nissan has come under financial pressure due to competition from Chinese rivals and a lack of strong product offerings. As part of its turnaround efforts, the company has said it plans to cut 9,000 jobs and a fifth of its production capacity.