2023-11-08 12:05:29 ET
France’s Renault SA ( OTCPK:RNSDF ) has cut its stake in Nissan ( OTCPK:NSANY ) to 15% from 43% by transferring 28.4% shares of the Japanese automaker to a French Trust, both companies said in a statement, putting them on equal footing of ownership.
The new restructured Alliance agreement between Renault, Nissan and Mitsubishi Motors came into effect on Wednesday, the companies said.
“This is a very important step for Renault Group, Nissan and Mitsubishi Motors, and lays the foundations for a new fair, long-standing and effective partnership that will create value for each Alliance member and for all our stakeholders,” said Jean-Dominique Senard, Chairman of the Alliance.
Nissan and Renault have finalized agreements related to their restructured alliance in July, with Nissan committing to park €600M (~$664M) in Renault's electric vehicle unit Ampere.
The new deals focus on expanding collaboration in operational projects in India, Latin America and Europe; working together on member-company projects that partners can join; as well as rebalancing of the alliance's cross-shareholdings.
Earlier in January, Renault said that it will transfer 28.4% of its current 43% stake in Nissan to a French trust in order to “neutralize” voting rights.
According to the Wednesday’s agreement , Renault has the flexibility to sell the shares held in the trust in coordination with Nissan, where Nissan or a designated third-party may get a right of first offer.
No impairment will be recorded in Renault Group’s financial statements as a result of the transfer by Renault of Nissan shares into the trust, the agreement added.
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Renault cuts Nissan stake to 15%, transfers shares to French trust