Renault to reduce Nissan stake following crunch talks

The Renault Group will significantly reduce its stake in Nissan as part of a historic reshaping of the firms’ Alliance.

Key to the new terms of the Alliance is equity of control over the other firm: each will retain a 15% shareholding in the other, with voting rights capped in kind.

Renault, which holds a 43% stake in Nissan, will transfer 28.4% of those shares to a French trust with “neutralised'' voting rights on most decisions. However, Renault will retain the economic rights – for example its share of dividends – attached to that 28.4%.

The French company will instruct the trust to sell those shares if “commercially reasonable” and “in a co-ordinated and orderly process” but isn't obligated to do so within any set period of time.

In turn, Nissan will buy a stake of up to 15% in Ampere, the Renault Group’s electric vehicle division, established in November 2022.

By 2030, the new arm will have six EVs on sale, including the Renault Mégane E-Tech Electric, new Renault 4, new Renault 5 and Renault Scenic Electric.

Citing a source said to be familiar with the matter, Bloomberg previously reported that Nissan’s investment in Ampere will range from $500 million to $750m (£450m to £680m).

Renault and Nissan will continue to use the Alliance Operating Board as its coordinating forum.

Both companies will also establish several new value-creation projects in markets, vehicles and technologies in Europe, Latin America and India.

The agreements are yet to be finalised and are still subject to the approval of each firm’s board.

Should they be approved, they will end months of crunch talks originally reported by the Financial Times to have been sparked by an intellectual property dispute.