Renault Cuts Nissan Stake To 15% From 43%

Under a "New Alliance Agreement" that was announced earlier this year, Renault and Nissan have implemented planned adjustments to their cross-shareholdings.

According to Reuters, Nissan and the Renault Group now each own 15% of the combined company. Out of the 43.4% of Nissan shares, 28.4% have been transferred by Renault to a French trust.

According to the automakers' statement, the revised alliance agreement between Nissan, Renault, and junior partner Mitsubishi Motors went into effect on November 8.

The equity adjustments were a key component of the agreement that Nissan and Renault made earlier this year to restructure their partnership within the Alliance, putting the two businesses on a more clearly equal footing. Important modifications to the procurement collaboration agreements were also made in an effort to sever ties between the two organisations, Nikkei Asia reported.

The tumultuous internal politics surrounding the two companies' fractious corporate relationship, which resulted in the controversial departure of Carlos Ghosn, the chief of Renault and architect of the Renault-Nissan Alliance, from the company and boards of Alliance members in 2018/19, were largely caused by Renault's larger stake in Nissan.  

Jean-Dominique Senard, Chairman of the Alliance, said: “We are delighted to announce today the effectiveness of the New Alliance agreement signed on at the end of July 2023. This is a very important step for Renault Group, Nissan and Mitsubishi Motors, and lays the foundations for a new fair, long-standing and effective partnership that will create value for each Alliance member and for all our stakeholders.”.