Renault agrees to lower Nissan stake in historic rebalancing
Renault agreed to lower its stake in Nissan Motor, seeking to address a longstanding source of friction in their two-decade alliance to better compete in an industry moving to electrification and automation.
The partners will retain a 15 per cent cross-shareholding, with Renault transferring the remainder of its stake into a French trust for a coordinated sale when it’s commercially “reasonable” to do so, the companies said on Monday (Jan 30). Renault, Nissan and junior alliance partner Mitsubishi Motors also plan to move forward via collaborations on specific projects, including in India, South America and Europe, according to a statement.
Nissan will also invest in Renault’s carved-out electric-vehicle and software business Ampere, with a goal of becoming a strategic shareholder. Bloomberg News first reported on the pair coming to an agreement on the rebalancing and key projects in principle last week. The plan still requires final approval from the companies’ respective boards.
The two sides have been inching closer to a decision since early last year. The agreement would address a power imbalance that’s long bothered executives in Japan. Although Renault holds the larger stake at 43 per cent with voting rights, Nissan makes more cars while owning a 15 per cent stake in the French carmaker with no voting rights.
The deal is crucial for Renault chief executive officer Luca de Meo to be able to move forward with his own strategy, involving a complex split in five different units, including Ampere. The French maker of Megane E-Tech and Austral cars wants to deepen ties with several other partners, including China’s Zhejiang Geely Holding and chipmaker Qualcomm. BLOOMBERG
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