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© Reuters.
By Scott Kanowsky
Investing.com — Renault SA (EPA:) and Nissan Motor Co., Ltd. (TYO:) have received approval from their boards to go ahead with a restructuring of the 24-year old alliance between the two carmakers, according to a joint statement on Monday.
Under the revamped partnership, which was previously announced last month, Renault’s stake in Nissan will fall to 15% from 43%, with 28.4% of its Nissan shares being transferred into a French trust where voting rights would be “neutralized” for most decisions. However, economic rights, including proceeds from dividends and share sales, would still benefit the manufacturer of models like Dacia and Alpine.
Japan’s Nissan, meanwhile, has agreed to invest up to 15% in Ampere, Renault’s new electric vehicle division.
Both boards also signed off on projects to develop new vehicle brands and technologies in Latin America, India, and Europe.
“This next level will create more growth opportunities and help secure operating efficiencies for each Alliance company to innovate and transform in the fast-changing market for automotive products and mobility services,” the companies said.
Renault and Nissan added that they have reached a “binding framework agreement” regarding these moves, and are planning to solidify a “definitive” deal by the end of the first quarter. Once this stage is entered, the changes are expected to be completed in the fourth quarter after they are approved by regulators.
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