France’s automaker Renault (EPA:RENA) has successfully diminished its ownership stake in Nissan (OTC:NSANY) from approximately 43% to a reduced 15% after executing a transfer of 28.4% of Nissan’s shares to a French trust, as officially announced by the alliance partners. This move aligns their cross-ownership interests, fostering a new era for their partnership.
The revised alliance agreement, encompassing Renault, Nissan, and their junior partner Mitsubishi Motors (OTC:MMTOF), officially came into effect on Wednesday, according to an official statement by the automakers.
The statement reads, “This next chapter of the alliance will build on the foundations of the long-standing partnership and will maximize value creation for each alliance member.”
Crucially, Renault holds the prerogative to divest the Nissan shares that have been entrusted to the trust at their discretion, with flexibility in coordination with Nissan. Additionally, the Japanese automaker or a third party may be granted a right of first offer, as outlined in the official statement.
The culmination of this revised agreement was reached in July, marking a significant milestone for Nissan and Renault after months of intense negotiations, particularly concerning the safeguarding of intellectual property rights in future collaborations.
In an earlier joint announcement in January, both companies revealed their intention for Renault to transfer around 28% of Nissan into a French trust, a measure aimed at achieving parity between the two partners.
Notably, as part of this restructured partnership, Nissan has committed to a substantial investment of up to 600 million euros (approximately $641 million) in Renault’s electric vehicle unit, Ampere. This underscores Nissan’s strategic commitment, which also secures them a board seat within the company. Mitsubishi has independently pledged to invest up to 200 million euros in the same unit, which Renault intends to take public through an initial public offering by the coming spring.
