RNSDF - Renault and Nissan close in on new alliance deal

Renault SA ( OTCPK:RNSDF ) is reported to be in the final stages of a deal to lower its stake with Japanese partner Nissan Motor ( OTCPK:NSANY ).

Sources indicate that the two auto giants are set to sign a non-binding agreement after details were largely finalized late last week. An event has been scheduled for November 15 to potentially discuss the details of the arrangement. A wildcard is the French government, which a key investor in Renault.

The plan is expected to see Renault ( OTCPK:RNSDF ) reduce its ownership of Nissan over time to 15% from the 43% stake it currently owns. A new look Renault would include an entity dedicated to EVs and software based in France and a partnership with China’s Zhejiang Geely Holding Group, focused on internal combustion and hybrid powertrains based outside France. Meanwhile, Nissan ( OTCPK:NSANY ) will invest $500M to $750M per the deal terms for a stake of about 15% in Renault’s Ampere electric vehicle business.

Catch up on the latest developments from the Paris Motor Show.

For further details see: