After more than 10 months of negotiations, Renault and Nissan have reached an agreement to modify the structure of their alliance.
Renault and Nissan will each own a 15% stake in the other as part of the new deal. As a result, Nissan will keep its long-held 15% stake in Renault while Renault will reduce its present 43% stake in the Japanese automaker. Renault will effectuate the change by moving 28.4% of its Nissan shares into a French trust, where the entrusted shares will be subject to neutral voting.
The trustee will then be given Renault’s instructions to sell its Nissan shares when the opportunity arises. Additionally, Nissan’s 15% holding in Renault will be converted from a non-voting stake to one with voting rights.
Furthermore, Nissan is going to become a strategic investor in Ampere, Renault’s new electric car and software company, as part of the renewed alliance. The Japanese automaker will invest up to €600 million ($663 million) in Ampere, securing a seat on the company’s board of directors. According to a press release issued by the two companies, this investment matches Nissan’s current electrification strategy and will result in many benefits and synergies between the companies. According to Renault Group chief executive Luca de Meo:
“These agreements provide us with a solid base to reactivate business operations worldwide in key markets, with the potential to generate hundreds of millions in value for Renault, Nissan, Mitsubishi, and stakeholders. They give us the strategic agility that we need more than ever in today’s rapidly evolving environment. We are all engaged with the right mindset and welcome Nissan as a strong partner in our upcoming EV and Software pure player Ampere. It confirms the attractiveness of the project to be the front runner in Europe, allowing Renault and its Alliance partners to position themselves ahead of the starting grid for the EV and software race in Europe.”
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
