Renault Updates Nissan Stake To 15% In New Alliance Agreement

The Renault Nissan Alliance has announced a renewed partnership agreement where both parties (Renault Group and Nissan) hold 15 per cent shares in the alliance. Voting rights for Renault and Nissan are capped at 15 per cent and both can freely exercise their voting rights within this limit only. 

With the refreshed alliance, Renault has transferred 28.4 per cent of its 43.4 per cent stake in Nissan to a French trust, which is entrusted to vote naturally, barring some limited exceptions. Renault will benefit from the dividends and proceeds from the sale of these shares until they are sold. 

Renault says this transfer of shares to a trust will not make a difference in its financial statements. Renault will still be able to sell the shares given to the trust, however, Nissan or a designated third party has the right of first offer. 

Jean-Dominique Senard, Chairman of the Alliance, said, “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.” 

The Alliance came into existence in 1999 as a strategic partnership between Renault and Nissan. In 2016, Nissan acquired a 34 per cent stake in Mitsubishi, thus making the alliance a partnership between Renault, Nissan and Mitsubishi.