Renault and Nissan are discussing the future of their alliance
Renault and Nissan announced on Monday October 10th that they were holding talks on the future of their alliance, with a desire to achieve structural improvements to ensure their operations and governance. In the first few listings on the Paris Stock Exchange, Renault shares rose more than 6% on the prospect of a change in the structure of the Renault-Nissan alliance, a long-standing demand from financial markets to help them better promote the French automaker.
The negotiations, which will open a new chapter in the history of the Franco-Japanese partnership forged more than twenty years ago, relate in particular to Nissan’s desire to invest in Renault’s new electric vehicle unit, the two manufacturers specify in a joint press Publication. “Discussions include: Nissan’s plan to invest in Renault’s new electric vehicle company, which will support Renault’s ‘Renaulution’ strategy and will be one of the strategic milestones towards the Nissan Ambition 2030 plan.” we read in the press publication. “The companies continue to work on structural improvements to ensure sustainable operations and governance of the alliance,” the document adds.
Renault from 43% to 15% from Nissan?
A source familiar with the matter told Reuters over the weekend that amid talks about its stake in electric company Ampère, Nissan was urging its French partner to reduce its stake in its capital as much as possible and may consider doing so fresh Raise money to redeem the securities.
Nissan would like Renault’s stake to ideally drop from 43% to 15%, which would match the stake it owns in Renault and that the French state holds in the diamond group, the source added.
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