French Prime Minister Manuel Valls said the government did not want carmakers Renault and Nissan to merge.
At the moment the companies own large shareholdings in each other and co-operate closely.
However, on Friday Renault held an emergency board meeting amid reports the French government, one of its biggest shareholders, wanted a merger.
Mr Valls has denied that, saying he hopes the existing alliance, which dates back to 1999, would continue.
“The state is fully playing its role as a shareholder,” the French prime minister said. “And at the same time, we fully trust Nissan and Renault managers.”
French car manufacturer Renault owns 43% of Nissan, while the Japanese firm holds 15% of Renault.
Full content: Reuters
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