5.2 C
New York
Wednesday, March 29, 2023
HomeBusinessRenault slashes Nissan stake as the automakers overhaul their decades-long alliance

Renault slashes Nissan stake as the automakers overhaul their decades-long alliance

Date:

spot_img

Related stories

Bitcoin Regains $28K; XRP Surges for a Second Day

Classifying XRP as a commodity could mean Ripple wins...

Web3 platform Chainlink Labs inks agreement with PwC

Chainlink Labs, the developer of the Web3 services platform...

C.O. nonprofit The Shield executive director traveling to D.C. for … – KTVZ

C.O. nonprofit The Shield executive director traveling to D.C....

Renault and Nissan automobile logos 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

Automobile giants Renault and Nissan on Monday agreed to restructure their decades-long alliance, in a move that would see Renault’s shareholdings in Nissan reduced from around 43% to 15%.

The deal, which still pends board approvals, would equalize the companies’ cross-shareholdings, with the carmakers now able to “freely exercise the voting rights attached to their 15% direct shareholdings, with a 15% cap,” the companies said.

The new structure would also see Renault transfer 28.4% of Nissan shares into a French trust.

Voting rights in the trust 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,” according to the Monday announcement.

Renault would instruct the trustee to sell those shares if “commercially reasonable” and as part of a “coordinated and orderly process.”

The carmakers first signed their coalition in March 1999, expanding it to include junior partner Mitsubishi Motors in 2016. The Monday deal comes after months of intense discussions over the restructure of the Franco-Japanese alliance.

As part of the agreement, Nissan would also invest in Ampere, Renault’s electric vehicle arm, while the two companies will embark on “high-value-creation operational projects” in Latin America, India and Europe.

Renault announced in November that it had signed a non-binding framework agreement with China’s Geely to establish a new company producing hybrid powertrains and “highly efficient ICE [internal combustion engine] powertrains.”

The French giant has also entered into a long-term strategic cooperation with U.S. chipmaker Qualcomm.

Renault shares dropped 1.4% in early trade in Europe, while Nissan shares were down by around 0.7% during Asian trading hours overnight.

Source

Latest stories