Renault shares slump after report that CEO Ghosn to be arrested in Japan for financial violations

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Nissan chairman and Renault CEO Carlos Ghosn

• Renault's shares tank as chairman and CEO, Carlos Ghosn, was arrested, according to Japan's Asahi News.
• A Renault representative did not immediately return a call seeking comment.

Carlos Ghosn, chairman of Nissan and CEO of Renault, is to be arrested in Tokyo for an alleged violation of Japan's financial instruments and exchange act, according to the country's Asahi News. Renault's shares, listed in Paris, dived as much as 5% on the news, a near three-year low.

The executive, 64, is suspected of having undereported his income on financial statements and the Brazil-born executive, who is also chairman and CEO of partner automaker Renault. He has agreed to voluntarily speak to prosecutors, the newspaper said.

Ghosn stepped down as CEO of Nissan in 2017. Since 1999 Nissan has been part of the Renault-Nissan-Mitsubihsi Alliance.

Business Insider could not independently verify the report. Nissan did not immediately respond to requests for comment.