Renault cuts Nissan stake as automakers review decades-old partnership

car giant Renault When Nissan Renault on Monday agreed to restructure its decades-old partnership in a move to reduce its stake in Nissan from about 43% to 15%.

The transaction, which is pending board approval, will allow automakers to “exercise, up to a maximum of 15%, the voting rights attached to their 15% direct holdings at will”, thereby increasing cross-shareholdings in both companies. Both companies said they would even out.

Under the new structure, Renault will transfer a 28.4% stake in Nissan to a French trust.

According to Monday’s announcement, the trust’s voting rights will be “neutralized” in most decisions, but the economic rights (dividends and proceeds from the sale of shares) will remain fully with Renault until such shares are sold. It will be profitable.”

Renault will instruct the trustee to sell these shares as part of a “commercially reasonable” and “coordinated and orderly process”.

The automakers first signed the coalition in March 1999 and expanded it to include junior partners. Mitsubishi Motors Monday’s agreement came after months of intense debate over restructuring the Franco-Japanese alliance.

As part of the agreement, Nissan will also invest in Ampere, Renault’s electric vehicle division, and the two companies will launch “high value creation businesses” in Latin America, India and Europe.

Renault announced in November that it had signed a non-binding framework agreement with China. Geely Establish a new company to produce hybrid powertrains and “high-efficiency ICE” [internal combustion engine] Power train. ”

The French giant also long-term strategic cooperation US chip makers Qualcomm.

Renault shares fell 1.4% in early European trading, while Nissan shares fell about 0.7% during Asian trading hours last night.