Renault has sold a portion of its stake in Nissan as part of efforts to rebalance the alliance between the two automakers. The sale involves approximately 5% of Nissan’s equity capital and is valued at €765 million.
- The transfer of the stake at the current market price will result in a capital loss for Renault, potentially reaching €1.5 billion. This loss will impact Renault’s financials but is expected to improve the net financial position of Renault Group Automotive segment.
- Under the new “rebalanced” alliance, Renault and Nissan are reducing their cross-shareholdings from 43.4% to 15%. This move aims to address tensions within the alliance and redefine the partnership that began in 1999 when Renault saved Nissan from bankruptcy.
- The alliance also includes Mitsubishi Motors, with Nissan holding a 34% stake in the struggling Japanese automaker. The three companies have been working together since 2016, but tensions have arisen over time.
- The alliance faced challenges such as the French state increasing its stake in Renault in 2015 and the arrest of former alliance leader Carlos Ghosn in 2018 on charges of financial misconduct. These events strained the partnership and highlighted the need for rebalancing.
- While Renault’s financials will be affected by the capital loss, the company stated that it will not impact its operating income. The sale of the stake is seen as a strategic move to optimize the alliance’s structure.
- As part of the rebalanced alliance, Nissan acquired a stake in Renault’s electric car division called Ampere. This move reflects the companies’ commitment to advancing electric vehicle technology and collaboration in the field.