Renault has agreed to lower its stake in Nissan Motor Co, seeking to address a long-standing source of friction in their two-decade alliance to better compete in an industry moving to electrification and automation.
The partners will retain a 15 per cent cross-shareholding, including a plan for Renault to transfer just over 28 per cent of its shares in Nissan into a French trust, the companies said in a statement on Monday. Renault, Nissan and junior alliance partner Mitsubishi Motors Corp also plan to move forward via collaborations on specific projects, including in India, South America and Europe, according to a statement.
The two sides have been inching closer to a decision since Bloomberg first reported news of Renault exploring a stake sale in April 2022, and will seek approval from their respective boards of directors in coming days.
The agreement would address a power imbalance that has long bothered executives in Japan. Although Renault holds the larger stake at 43 per cent, with voting rights, Nissan makes more cars while owning a 15 per cent stake in the French carmaker, with no voting rights.
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– Bloomberg
