Nissan, Renault stock rise after GM alliance talks called off

Shares of Nissan and Renault rose Thursday as investors reacted with relief to news that General Motors called off talks on possibly creating a three-way alliance.
The three-month-long talks came undone as Nissan Motor Co. and Renault SA of France declined to pay a premium for reaping what GM said would have been a disproportionate share of the benefits, according to a joint statement issued by the companies.
"We've somewhat expected the outcome so we just take it as is," Nissan Chief Operating Officer Toshiyuki Shiga told public broadcaster NHK. "A deal like this is difficult unless each participant is positive about an alliance as a benefit."
Investors and analysts had worried that a tie-up with GM, faced with towering health care costs and struggling to turn around its business, would burden Nissan and Renault, which hold stakes in each other.
Nissan's stock jumped on the news, climbing 3.47 percent to close at 1,369 yen (US$11.65;

Updated : 2021-01-28 16:08 GMT+08:00