French minister says Renault stake sale not urgent image

According to Economy Minister Emmanuel Macron, the French government is in no hurry to renounce the 15% holding it has in Renault and other domestic companies (such as the Orange mobile carrier).

The comments have come as a response to media reports and inquiries – the government has a strategy to give up 5 billion euros to 10 billion euros in privatization sales. The current assets of the French government total around 100 billion euros and the plan to sell some would materialize over the coming 18 months. The French economy has slowed down and the country has massive debt, which prompted the government in finding such solutions.

“For the companies that you have cited [Renault and Orange] that is not a priority for the time being, and our desire is not to reduce stakes in those two companies,” Macron said in an interview with France Inter radio.

The news shouldn’t come as a surprise, as the second-largest French automaker has been surging in Europe on strong demand for models such as the Captur small crossover and the affordable range from the Dacia subsidiary.

Back in May, France also took a stake (14%) in loss-making PSA Peugeot Citroen in a recapitalization deal that also saw China’s Dongfeng Motor match the government and the Peugeot founding family.

Via Automotive News Europe