Paris, France – Renault (EPA:RENA), the renowned French automobile manufacturer, has significantly lowered its stake in Nissan (OTC:NSANY) to 15%, effectively decreasing its prior shareholding of about 43%. This transformation was achieved by transferring 28.4% of Nissan’s shares into a trust based in France, as jointly announced by the alliance partners.
This strategic realignment signifies a fundamental shift in the dynamic of cross-ownership between Renault, Nissan, and their junior partner, Mitsubishi Motors (OTC:MMTOF). The freshly restructured alliance came into formal operation on Wednesday, as articulated in an official statement released by the automakers.
“The next chapter of the alliance will be constructed upon the enduring collaboration and will seek to optimize value generation for all members of the alliance,” the statement underscored.
Notably, Renault has not bound itself to a specific timeline for the sale of Nissan shares entrusted to the trust. Instead, it retains flexibility to divest these shares in coordination with Nissan. Furthermore, the statement elucidates that Nissan or a third party may be granted a right of first offer in the event of Renault’s intention to sell the entrusted shares.
This substantial shift in shareholding structure follows the finalization of terms between Nissan and Renault in July. The alliance partners unveiled a sweeping reconfiguration of their partnership in London earlier this year after months of intense negotiations, primarily fueled by Nissan’s concerns regarding safeguarding its intellectual property in forthcoming collaborations.
The groundwork for this transformation was already laid in January when the companies jointly announced Renault’s intention to transfer approximately 28% of Nissan’s shares into a French trust, thereby equalizing their partnership.
As a pivotal component of this revised alliance, Nissan has pledged to invest up to 600 million euros (equivalent to $641 million) in Renault’s electric vehicle unit, Ampere. This commitment not only underscores Nissan’s status as a strategic investor but also secures the company a seat on Ampere’s board.
Additionally, Mitsubishi has independently committed to invest up to 200 million euros in this unit. Renault’s aspiration is to list the electric vehicle unit on the market through an initial public offering by the spring of the coming year.