French automaker Renault has cut its stake in Japanese automaker Nissan to 15% from about 43% by placing 28.4% of the stakes in a French trust, the alliance partners announced in a statement, putting them on equal footing of cross-ownership.
According to the manufacturers, the new deal for the restructured alliance between Renault, Nissan, and junior partner Mitsubishi Motors went into force on November 8, 2023. The official statement reads:
“This next chapter of the alliance will build on the foundations of the long‐standing partnership and will maximize value creation for each alliance member.”
According to the statement, Renault has no obligation to sell the Nissan shares that were transferred to the trust within a specific time period. The French carmaker, however, can sell the entrusted shares flexibly in coordination with Nissan, and the Japanese automaker or a third party may get a right of first offer.
After spending months of intense negotiation amid the Japanese automaker’s concerns about protecting its intellectual property in future collaborations, Nissan and Renault finalized these terms in July after unveiling a sweeping overhaul of their partnership early this year.
As part of the deal, Nissan has committed to invest up to 600 million euros ($641 million) in Renault’s electric vehicle unit Ampere, consistent with it being a strategic investor and securing a board seat in the company. On the other hand, Mitsubishi has separately committed to invest up to 200 million euros in the unit, which Renault hopes to list on the market through an initial public offering by next spring.
Source: Reuters
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