Renault slashes Nissan ownership to 15 percent

After authorities accepted the change, French manufacturer Renault and Japanese partner Nissan formally inaugurated their "rebalanced" partnership on Wednesday. The New Alliance Agreement between Renault Group and Nissan enters into force today, replacing the previous agreements regulating the Alliance (specifically, the Restated Alliance Master Agreement, the Alliance Equity Participation Agreement, and the March 12, 2019 Memorandum of Understanding).

Renault Group and Nissan currently have a 15 percent cross-shareholding with lock-up and standstill clauses.

Each partner has the ability to exercise the 15 percent voting rights associated with its own ownership. Renault Group and Nissan's voting rights are restricted at 15 percent of the exercisable voting rights, and both firms can freely exercise their voting rights within that restriction.

Renault has moved 28.4 percent (out of 43.4 percent) of Nissan shares into a French trust, where the shares will be voted neutrally, with several caveats. The Renault Group continues to profit fully from the economic rights (dividends and share sale revenues) from the entrusted Nissan shares until such shares are sold.

Renault Group may now advise the trustee to sell the entrusted Nissan shares, but it is under no duty to do so within a set time frame. Renault Group has complete freedom to sell the Nissan shares held in trust in a coordinated and orderly procedure with Nissan, in which Nissan or a designated third party has the right of first offer.

As a result of Renault Group's transfer of Nissan shares into the trust, no impairment will be reported in Renault Group's financial statements.

This next phase of the Alliance will expand on the long-standing relationship by maximizing value generation for each Alliance member and laying the groundwork for a new balanced, fair, and effective governance. The Alliance will continue to identify major initiatives in many areas with the goal of delivering win-win, large-scale, and actionable advantages.

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."

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