Renault Group on Monday announced that after several months of constructive discussions with Nissan Motor Co, it has reached an important milestone in defining new foundations for their partnership.
Subject to the approval of its Board of Directors, the aim is to strengthen the ties of the Alliance.
According to a communication from Renault Group, the decision will maximise value creation for all stakeholders with a three-stage approach. First, reloading the partnership with high-value-creation operational projects; this would consist of key projects in Latin America, India and Europe, which would be deployed along three dimensions: markets, vehicles and technologies.
Second, enhancing strategic agility with new initiatives that partners can join; Nissan to invest in Ampere, the EV & Software pure player founded by Renault Group, aiming to become a strategic shareholder.
Third, balanced governance and cross-shareholding foster accelerated operational efficiencies. Renault Group and Nissan would retain a 15% cross-shareholding, with a lock-up obligation and a standstill obligation. They would be able to freely exercise the voting rights attached to their 15% direct shareholding, with a 15% cap. Renault Group would transfer 28.4% of Nissan shares into a French trust, where the voting rights would be “neutralised” for most of the decisions, but the economic rights (dividends and shares’ sale proceeds) would still entirely benefit Renault Group until such shares are sold. Renault Group would instruct the trustee to sell the entrusted Nissan shares if commercially reasonable for Renault Group in a coordinated and orderly process, but it would have no obligation to sell the shares within a specific pre-determined period.
The Alliance Operating Board would remain the coordination forum, the statement noted. The agreements are being finalised, and the transaction remains subject to the approval of the boards of directors of Renault Group and Nissan, the statement added.
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