there is the share deal. The French will sell 28.4% of the Japanese group. A 15% cross-shareholding will remain – Corriere.it

The knot that blocked the partnership between the two car giants Renault and Nissan has been dissolved. The two major manufacturers, one French and the other Japanese, have reached an agreement on cross-shareholdings. The marriage, born in 1999, at the time of a profound crisis of the Japanese Nissan, will find a new equilibrium point with the sale of a share equal to 28.4 percent of the Nissan capital by Renault which will bring both groups to hold 15 per cent of the share capital of the partner. After months of constructive discussions, the Renault group has reached an agreement that lays new foundations for the alliance with Nissan. The agreement provides that the two automakers will maintain a cross-shareholding of 15% while Renault will transfer the additional 28.4% it holds in the Japanese automaker – for a current total of 43.4% – in a trust to which give the task of selling the share, whose voting rights will be neutralized in the meantime. The sale will take place if it is commercially reasonable for Renault in a coordinated and orderly process but without the obligation to sell within a pre-specified period of time. That is, when Nissan’s share prices recover, as today’s market value is well below cargo levels.

In this way the two automotive groups will maintain a cross shareholding of 15%, smoothing out the strong conflict that had arisen. The disparity has been a cause of friction, especially after Nissan became significantly more profitable than Renault.

The ambition to strengthen the Alliance’s ties and maximize the creation of value for all stakeholders, reads a joint press release. It is a profound revision of the marriage conditions between the two groups, which since the beginning of their union in 1999 have had happy moments but also crises, especially after the fall of former CEO Carlos Ghosn, arrested at the end of 2018 with the accused of having hidden tens of millions of euros of earnings from the tax authorities. Renault and Nissan will each hold 15% of the other’s capital, with the obligation to maintain, as well as the obligation to limit their holdings, the note continues. . However, Renault will continue to receive dividends on these shares until their effective sale, for which, as mentioned, no specific deadline has been set.