Renault and Nissan will each hold 15% of the capital of the other, “with an obligation to retain, as well as an obligation to cap their holdings”.
Renault and Nissan confirmed on Monday a major overhaul of their union sealed in 1999, which has known good times but also serious crises of confidence. After months of complex negotiations, Renault will reduce its stake in Nissan to 15% against 43.4% currently, to put the two automakers on an equal footing. “The ambition is to strengthen the links of the Alliance and maximize the creation of value for all stakeholders“, According to a joint press release.
The tensions between the two groups, linked to the original imbalance of their cross-shareholdings, had reached their climax after the spectacular fall of their common big boss Carlos Ghosn, arrested at the end of 2018 in Japan for accusations of financial embezzlement, and who fled to Lebanon. one year later. Renault and Nissan will each hold 15% of the capital of the other, “with a retention obligation, as well as an obligation to cap their holdings“, According to a joint press release.
Read alsoLove, hate and reconciliation, the crazy Renault-Nissan saga
However, the French group will not immediately sell the rest of its Nissan shares (28.4%) because their market value is much lower than their value currently recorded in its accounts. Also, to avoid massive depreciation, Renault will transfer this tranche to a trust based in France, where the voting rights attached to these shares will be “neutralizedfor most decisions, is it specified in the press release.
On the other hand, Renault will continue to receive dividends on these securities until their actual sale, for which no specific deadline has been set. On the Paris Stock Exchange, Renault, which had regained its colors since leaving Russia in early 2022, stumbled on Monday. Its action lost more than 2% on Monday at 12:00 p.m. (11:00 a.m. GMT), to 37.32 euros, in a market in slight decline.
SEE ALSO – Big Bang Eco: Automotive: interview with Luca de Meo, CEO of Renault
Ending the “frustration»
Nissan already held 15% of Renault but was deprived of the voting rights of this stake, a restriction which will now be lifted. It is not, however, aNissan victory over Renault“, had assured a French source close to the file interviewed by AFP a few months ago. Because if thefrustration” from Nissan on its unequal relationship with Renault was very visible, Renault was also unhappy with the situation, which he wanted “normalizeso that their cooperation becomes more effective and accelerates, according to the same source.
Read alsoRenault, Nissan and Mitsubishi out of joint projects
In addition to the authoritarian management of Carlos Ghosn, Nissan had also been scalded by the surprise increase in the share of the French State in the capital of Renault in 2015 and by recurring merger projects between the two groups at the initiative of Paris. Nissan will also invest in Ampere, the future electric pole of its French partner. The amount of this commitment has not yet been specified. New operational projects between Renault and Nissan are also planned in Latin America, India and Europe, according to the press release.
At this point, the statement “did not reserve many surprises” after several months of discussions, estimated the experts of Oddo BHF in a note published Monday. But the agreement constitutes, according to them,a step in the right direction» and confirms «that the tensions on the subject were exaggerated“. Analysts sayconvinced that the alliance can work much better with Renault owning only 15% of Nissan rather than the 43.4% currently held“. They consider that, in the coming months, “the concrete announcements concerning the potential future projects between the two partners (three including Mitsubishi) will allow them to generate additional synergies (…), to limit the investment needs and to reassure more about the future of the covenant“.
Read alsoRenault and Airbus join forces in the batteries of tomorrow
The agreements on all these different aspectsare being finalized» and must still be validated by the respective boards of directors of the two groups. More detailed announcements should be made on February 6, a source familiar with the matter told AFP last week.