Renault to reduce stake in Nissan from 43% to 15%

Renault and Nissan have today announced an equity stake revision of their partnership. The French automaker, which holds a 43% stake in the Japanese company, is to reduce it to 15 percent.  

In a statement, Nissan said that after several months of constructive discussions with the Renault Group, “it has reached an important milestone in its discussions with Renault Group on defining new foundations for their partnership.”

As per the proposed plan aimed at “balanced governance and cross-shareholding to foster accelerated operational efficiencies”, Nissan and Renault Group would retain a 15% cross-shareholding, with a lock-up obligation, as well as a standstill obligation. They would both be able to freely exercise the voting rights attached to their 15% direct shareholding, with a 15% cap.

Renault Group would transfer 28.4% of Nissan shares into a French trust, where the voting rights would be “neutralized”for most of the decisions, but the economic rights (dividends and shares’ sale proceeds) would still entirely benefit to Renault until such shares are sold.

Meanwhile, Nissan is to invest in Ampere, the EV and software pure player founded by Renault Group, aiming to become a strategic shareholder in the same.

The overall goal of the changed equity scenario is to strengthen the ties of the Alliance and maximise value creation for all stakeholders including a reloading of the partnership with high-value-creation operational projects in Latin America, India and Europe, which would be deployed along three dimensions: markets, vehicles and technologies.

The agreements are being finalised and the transaction remains subject to the approval of the boards of directors of Renault and Nissan.

Renault Group is to instruct the trustee to sell the entrusted Nissan shares if commercially reasonable for the Renault Group in a coordinated and orderly process, but it would have no obligation to sell the shares within a specific pre-determined period of time.