Renault’s stake in Nissan will be reduced to 15 percent

Japan Public Television, citing market resources for the negotiations, reported that Renault’s stake level was planned to be reduced to 15 percent.

Renault owns the largest 43% stake in Nissan, and Nissan owns 15% in Renault. Nissan has been known to be uncomfortable with the current share level gap for a long time. The two companies are negotiating the mutual matching of their participation levels.

Under the plan, it was indicated that the shares will be temporarily transferred to a separate company and will be sold gradually.

OK AGREEMENT

On the other hand, it has been reported that Nissan may take a maximum of 15 percent of the shares of the new electric vehicle (EV) company that the French company plans to establish.

Executives from the French and Japanese company are said to have agreed on these negotiations and board approval is awaited.

Group Renault chief executive officer (CEO) Luca de Meo is expected to meet Nissan chief executive Makoto Uchida this week to finalize negotiations.

4 BILLION DOLLARS SANCTIONED

Renault-Nissan formed one of the world’s largest automobile groups with a Franco-Japanese partnership in 1999. Renault had invested nearly $4 billion in Nissan.

The French automaker has become Nissan’s largest shareholder, with its “redemptive move” for the Japanese company on the verge of bankruptcy. Japan’s Mitsubishi joined the alliance in 2016.

De Meo, the French manager for the negotiations, stated that they wanted to redefine the partnership, saying: “This is not a ‘one party loses, the other wins’ situation.”

Former Nissan chief executive Saikawa said the Japanese firm and the “unequal automotive alliance of the French firm, by reducing Renault’s stake in Nissan” should find a solution. (AA)