Renault is cutting its Nissan stake as the automakers overhaul their decade-long alliance
The car logos of Renault and Nissan are pictured during the Brussels Motor Show on January 9, 2020 in Brussels. (Photo by KENZO TRIBOUILLARD/AFP via Getty Images)
Kenzo Tribouillard | Afp | Getty Images
Car giants Renault and Nissan agreed on Monday to restructure their decade-long alliance, in a move that will see Renault transfer a 28.4% stake in Nissan to a French trust, the companies said.
Voting rights in the trust would be “neutralized” for most decisions, but the economic rights (dividends and share sale proceeds) would remain entirely in favor of Renault until such shares are sold,” according to the announcement on Monday. Renault would instruct the trustee to sell those shares if “commercially reasonable” and as part of a “coordinated and orderly process.”
The deal still awaits board approval, but will see Renault’s stake in Nissan reduced from around 43% to 15%, bringing the stake down to equal the Japanese company’s current stake in Renault.
Both companies would be able to “freely exercise voting rights associated with their 15% direct shareholdings, subject to a ceiling of 15%,” the companies said.
The automakers first signed their coalition in March 1999. Monday’s agreement comes after months of intense discussions.
As part of the deal, Nissan will also invest in Ampere, Renault’s electric car arm, while the two companies will embark on “high-value operational projects” in Latin America, India and Europe.
