France is considering a merger between the two automakers to strengthen its grip on the sector and counter Chinese and German competition, Il Messaggero said.
Shares in Renault initially rose more than 4 percent on Monday, with traders citing media speculation over the potential combination. They pared gains to 1 percent after Elkann’s comments.
After abandoning Russia, at the time its second-largest market after France, following Western sanctions following its invasion of Ukraine, and reducing the scope of its global cooperation with Nissan, Renault has been seen as a potential M&A target.
Speculation intensified after an electric vehicle market slowdown