Daimler and Renault are close to deciding on a wide-ranging strategic partnership that would include a swap of small equity stakes according to the Financial Times.
An announcement could be made as early as next month with each company holding “symbolic” stakes of around 3% percent, just above the level at which they would have to be disclosed, according to sources close to the situation.
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The two companies have confirmed that they are in talks on possible cooperation but declined to comment on whether the accord might include swapping equity stakes.
They have been discussing a partnership to develop small cars, share engines and pursue other joint projects. One source told the FT that Daimler and Renault “don’t want to marry” but are likely to make a small equity swap to underscore their commitment to collaboration.
At the Geneva Motor Show earlier this month, Renault chairman Carlos Ghosn said the alliance could afford to buy a stake in a third partner if the need arose. He added that the alliance was “talking to many people in the industry.”
Renault, which has an 11-year-old cross-shareholding alliance with Nissan, has long spoken of adding a third partner.
Daimler, which has a history of unhappy tie-ups with other carmakers, including Mitsubishi, Hyundai and Chrysler, is said to be less keen on taking an equity stake in Renault, but it does need a partner for small cars where it struggles to be profitable.
UK: Renault Daimler tie-up talks attract mixed reactions
