Renault cuts Nissan’s stake as automakers revisit their multi-year alliance

Automotive giants Renault and Nissan on Monday agreed to restructure their longstanding alliance, which would see Renault transfer 28.4% of Nissan’s shares to a French trust, the companies said.

The voting rights in the trust will be “neutralized” for most decisions, but the economic rights (dividends and proceeds from the sale of shares) will continue to fully benefit Renault until such shares are sold. on Monday. Renault will instruct the trustee to sell these shares if it is “commercially feasible” and in a “coordinated and orderly process”.

The deal is still awaiting board approval, but would reduce Renault’s stake in Nissan from around 43% to 15%, bringing it down to the level of the Japanese company’s current stake in Renault.

Both companies will be able to “freely exercise the voting rights associated with their direct shareholding of 15%, subject to a cap of 15%,” the companies said.

The automakers first signed their coalition in March 1999. The agreement was reached on Monday after months of intensive discussions.

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