Renault and Nissan finalize binding contracts
Renault Group and Nissan Strengthen Partnership with New Alliance Agreement
Renault Group and Nissan have entered into a new Alliance agreement, aiming to reinforce their long-standing partnership and maximize value creation for each member. The agreements focus on extending the Alliance collaboration in three key areas: high-value-creation operational projects, enhanced strategic agility, and rebalanced governance.
Under the new agreement, Renault Group will transfer 28.4% of its Nissan shares into a French trust. The entrusted shares will be voted neutrally, subject to limited exceptions. Nissan's investment in Ampere, Renault Group's new EV and software entity in Europe, secures a board seat for the company, with Nissan committing to invest up to €600 million.
The collaborative projects aim to deliver benefits in key markets such as Europe, Latin America, and India. These projects are expected to deliver numerous synergies, including cost efficiencies, regulatory compliance, and a broader range of EV products and powertrains.
The agreements involve reinforced Alliance governance and rebalanced Renault Group-Nissan cross-shareholdings. Nissan would be able to exercise its voting rights attached to its shareholding in Renault Group, with both companies' voting rights capped at 15% of the exercisable voting rights. Renault Group would continue to fully benefit from the economic rights from the entrusted shares until such shares are sold.
The partners are considering new key projects in Latin America, India, and Europe that aim to deliver win-win, large-scale, and actionable benefits. These initiatives align with Nissan's electrification strategy, creating potential benefits and synergies that complement Nissan's goals in Europe and other markets.
Jean-Dominique Senard, Chairman of The Alliance, stated that the agreements signed strengthen the long-standing partnership and maximize value creation for each Alliance member. Makoto Uchida, President and CEO of Nissan Motor Co. Ltd., added that the agreements will create additional value through initiatives aligned with Nissan's Ambition 2030 and electrification strategy.
Luca de Meo, CEO of Renault Group, stated that the agreements will provide a solid base to reactivate business operations worldwide and generate hundreds of millions in value for the partners. Renault Group and Nissan have already announced their renewed commitment to Indian operations through new investment and vehicles.
The transfer of the 28.4% of Nissan shares to the trust triggers no impairment in Renault Group's financial statements. The agreements aim to enhance strategic agility with new initiatives that partners can join. However, the identity of the trustee for the French trust holding Renault Group’s 28.4% stake in Nissan remains confidential, as is typical for trust structures of this nature. No disclosure has been made by Renault, Nissan, or French authorities.
The agreements are expected to deliver numerous synergies, including cost efficiencies, regulatory compliance, and a broader range of EV products and powertrains. These collaborative projects aim to deliver benefits in key markets such as Europe, Latin America, and India, strengthening the partnership between Renault Group and Nissan and maximizing value creation for each Alliance member.
Read also:
- IM Motors reveals extended-range powertrain akin to installing an internal combustion engine in a Tesla Model Y
- Ford Embraces Silicon Valley Approach, Introducing Affordable Mid-Sized Truck and Shared Platform
- Future Outlook for Tesla in 2024: Modest Expansion in Electric Vehicle Sales, Anticipated Surge in Self-Driving Stock
- Vegetable oils are similarly utilized in the process of road cleaning.
