Rus News Journal

Renault begins privatisation

the National symbol of France becomes the private company

Under messages The Wall Street Journal Europe and Le Figaro, the French government declared intention to begin selection of banks which will be advisers in the course of privatisation of the leading French automobile company of Renault SA which actives are estimated in $7,2 billion Renault Privatization means transition in private possession of a symbol of the national industry of France.

the Decision on the beginning of selection of banks the Minister of Economics of France has accepted Edmond Alfanderi which have declared after the past last week meetings of the cabinets: I have decided to begin today consultation concerning privatisation of Renault with separate banks which in the future will help us to distribute correctly Renault capital . As he said, it will be both French, and foreign banks. The minister has underlined that it does not mean at all that the government declares company sale, but this consultation will allow the government to pave the way for forthcoming privatisation. Phillip Oberger, the secretary of financial committee of National assembly, has declared that in July the government has accepted the final decision about partial sale Renaut.
As assume the French observers, the decision to name names of advisory banks is the first step on a way to privatisation. However Renault privatisation - very difficult business which has become by a large national problem. Communistic trade union Confederale Generale du Travail will oppose its sales, giving reason for it that from the end of the Second World War of Renault is a symbol of the stable national property. There is no common opinion concerning destiny of Renault and in the French society as a whole.
Renault is one of few European automobile companies, whose incomes (the profit in 1993 has made 1,07 mlrd francs) have not decreased as a result of several years of decline of the European automobile market. Nevertheless the state any more in a condition to subsidise the company. Its expenses grow recently in connection with full replacement of a lineup (for example, working out of cars Safrane and Laguna has managed Renault in 7 mlrd francs). For today of 80 % of actions of Renault the French government, and 20 % - Volvo owns. 1 % of actions conditionally belongs to investors from among heads of the French concern (about a present condition of the company in detail told in yesterday`s number).
According to the French analysts, the government at first will sell 25 % of actions of Renault. Besides, the French government plans to exclude Volvo from among investors of Renault. As the director of Renault for public relations Jacque Puasson has informed the correspondent, the destiny of belonging Volvos of actions basically is solved - they should be sold the French space company MATRA (in cooperation with it Renault model Espace is developed). Representatives MATRA more than once declared desire to become one of shareholders of Renault. The question in, whether will be limited this desire to purchase of the Swedish share of actions.
concerning terms of the beginning of privatisation in the top echelons of power there is no full unity, and date of sale of the state share holding is not named yet. So, the minister of industry Zherar Long hopes that Renault privatisation will begin already in second half of this year. However, when the government in March of this year informed on denationalisation of insurance company Assurance Generales de France and the companies on manufacture of computers Cie. des Machines Bull, about Renault it has been told nothing. According to some observers, the government has decided to delay the beginning of privatisation of Renault to presidential elections which will take place in May, 1995.