Renault and Nissan automobile logos are pictured during the Brussels Motor Show in Brussels, Belgium, January 9, 2020. (Photo by KENZO TRIBOUILLARD/AFP via Getty Images)
Kenzo Tribouillard | AFP | Getty Images
Auto giants Renault and Nissan on Monday agreed to restructure their decade-long alliance, in a move that will see Renault transfer 28.4% of Nissan shares to a French trust, the companies said.
Voting rights in the trust would be “neutralized” for most decisions, but economic rights (dividends and proceeds from sale of shares) would continue to fully benefit Renault until those shares are sold,” read Monday’s announcement. Renault would direct the trustee to sell those shares when “commercially appropriate” and as part of a “coordinated and orderly process.”
The deal is still subject to board approval but would result in Renault’s stake in Nissan being reduced from around 43% to 15%, bringing its stake down to the Japanese company’s current stake in Renault.
Both companies could “freely exercise the voting rights associated with their 15 percent direct holdings with a 15 percent cap,” the companies said.
The automakers first signed their coalition in March 1999. The Monday deal comes after months of intense discussions.
As part of the deal, Nissan would also invest in Ampere, Renault’s electric vehicle arm, while the two companies will undertake “high value-added operational projects” in Latin America, India and Europe.