The arrest of Carlos Ghosn prevented the merger of Renault and NissanNovember 21, 2018
The board of the Japanese brand was opposed to reorganization
The arrest of the head of the Renault-Nissan alliance, Carlos Ghosn, may be associated with plans to merge Renault and Nissan. From anonymous sources it became known that the decision should have been taken within a few months. The Nissan board was opposed to the merger and was looking for an opportunity to prevent it by any means.
According to the Financial Times, before his detention at Tokyo Airport, Carlos Ghosn was dealing with this very issue. And the Nissan board acted with sharp criticism of any reorganization, as it could strengthen the status of Renault. Now the French own 43 percent of Nissan’s shares, which provide an opportunity to control business processes and elect management members, while Nissan owns only 15 percent of Renault’s non-voting shares.
It clarifies Asahi Shimbun, the staff of the Tokyo prosecutors worked closely with Nissan. Law enforcement authorities knew the exact time of landing of the plane Gona at Haneda airport, and also received permission for immediate access to the board directly on the runway.
Carlos Gona is accused of concealing income and misuse of funds. During the internal investigation, it became known that the head of the board paid for the purchase and repair of real estate at the company’s expense: how much billions of yen he spent on houses in Rio de Janeiro, Beirut, Paris and Amsterdam. Now Ghosn faces up to 10 years in prison.
After the arrest of Ghosn, the Nissan and Mitsubishi boards quickly removed him from their posts. Renault retained all the leading posts for the detained head, but recognized Ghosn to be “temporarily incapable.” Thierry Bollore has been appointed acting CEO of the brand.