France ready to cut Renault stake to shore up Nissan partnership: finance minister

France is rey to consider cutting its stake in Renault in interests of consolidating automaker's alliance with Nissan, Finance Minister Bru Le Maire said on Saturday.

He was speaking in Japan after Italian-US carmaker Fiat Chrysler pulled plug on its proposed merger with Renault, saying negotiations h become "unreasonable" due to political resistance in Paris.

In an interview with AFP on sidelines of G20 finance ministers meeting in Japan, Le Maire said Paris might consider reducing state's 15-percent stake in Renault if it led to a "more solid" alliance between Japanese and French firms.

"We can reduce state's stake in Renault's capital. This is t a problem as long as, at end of process, we have a more solid auto sector and a more solid alliance between two great car manufacturers Nissan and Renault," he told AFP.

Last week, FCA stunned auto world with a proposed "merger of equals" with Renault that would -- toger with Renault's Japanese partners Nissan and Mitsubishi Motors -- create a car giant spanning globe.

combined group would have been by far world's biggest, with total sales of some 15 million vehicles, compared to both Volkswn and Toyota, which sell around 10.6 million apiece.

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But deal collapsed suddenly on June 6, with FCA laying blame at door of Paris.

"It has become clear that political conditions in France do t currently exist for such a combination to proceed successfully," FCA said in a statement.

Le Maire said Renault should concentrate on forging closer ties with its Japanese partner Nissan before seeking or alliances.

Things need to be done "in right order.... First alliance (between Nissan and Renault) should be consolidated and n consolidation (more generally) and t one before or." "Orwise, everything risks collapsing like a house of cards," he warned.

minister said it would be up to bosses of Renault and Nissan to decide how to push alliance forward as ties between two firms have been strained after shock arrest of former boss Carlos Ghosn.

Renault is pushing for a full merger between pair but re is deep scepticism of plan at Nissan.

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