Renault and Nissan have executed planned changes to their cross-shareholdings under a ‘New Alliance Agreement’ outlined earlier this year.
As a result, Renault Group and Nissan now each have a cross-shareholding of 15%. Renault has transferred 28.4% (out of 43.4%) of Nissan shares into a French trust.
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The new agreement for the restructured alliance between Renault, Nissan and junior partner Mitsubishi Motors came into effect on 8 November, the automakers said in the statement.
Earlier this year, Renault and Nissan struck a deal to reformulate their relationship in the Alliance and the equity changes were an important part of putting the companies on a more obviously equal footing. There were also important changes to procurement collaboration arrangements designed to loosen ties between the two entities.
Renault’s higher stake in Nissan was a key source of tension in a fractious corporate relationship between the two that was subject to tumultuous internal politics that led to Renault chief (and Renault-Nissan Alliance architect) Carlos Ghosn leaving the company and boards of Alliance members in controversial circumstances in 2018/19.
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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By GlobalDataMakoto Uchida, President and CEO, Nissan Motor Co. Ltd., said: “Based on this equal footing, Nissan will continue to harness our core competencies and be more agile to explore further growth opportunities that support our business strategy, especially through initiatives aligned to Nissan’s Ambition 2030 and electrification strategy, while continuing to generate greater value for the wider Alliance. We are convinced of the future prospects that will flow from our rebalanced partnership with Renault Group. “
Luca de Meo, CEO of Renault Group, said: “We are now effectively entering this new era of the Alliance with a pragmatic and business-oriented approach. Our joint projects in Europe, Latin America and India will strengthen our partnership and generate hundreds of millions of euros in value for each partner while being mutually beneficial in the field of innovation. We are also very proud to welcome Nissan and Mitsubishi Motors as strong partners in Ampere, our EV and software business, confirming the attractiveness of our assets. Finally, Renault Group will benefit from additional flexibility in its capital allocation policy with the potential monetization of Nissan shares.”
