Renault to slash stake in Nissan from 43% to 15%

Renault will sell 28.4% of its Nissan shares worth $4.1 billion.

Renault has announced that it will reduce its stake in Nissan from 43.4% to 15% as part of a new rebalancing strategy.

The announcement comes after months of negotiations between the two companies, with both sides expected to finalize the deal next week.

According to media reports, the French carmaker will not sell the outstanding 28.4% of its Nissan shares worth $4.1 billion immediately as the current market value is lower. It is said that the shares will be placed in a French trust and Renault would instruct the trustee to sell them when the market value seems commercially reasonable to the company.

Renault and Nissan announced their plans to restructure their alliance in October last year. The French carmaker has set up a separate entity called Ampere for its electric vehicle and software activities. It is also planning to partner with China’s Geely. On the other hand, Nissan is keen to invest in Renault’s new EV business as well.

Source: Reuters