Renault and Nissan restart together: what the agreement provides

30 January 20231 year ago babelfish

"After months of constructive discussions" the Renault group has reached an agreement that establishes "new foundations" for the alliance with Nissan. Satisfied the requests of both parties on stakes in the Japanese brand and Japanese support for the electric mobility plans of the French

Paris breathes a sigh of relief. The French government, which owns 15% of Renault, is celebrating the maintenance of the agreement with the Japanese d Nissan. An agreement that for several months seemed on the verge of breaking down, having dissatisfied both brands, especially in recent years and which instead, thanks to the appropriate adjustments of course, was subjected to a simple coupon, albeit of a very important scope.

After several months of constructive discussions w. Nissan Motor Co., Ltd, we today announced that, subject to the approval of our board of dir., we have reached an important milestone in our discussions on defining new foundations for our partnership. https://t.co/dKsFvgDJ6k

— Renault Group (@renaultgroup) January 30, 2023

THE DEAL BETWEEN NISSAN AND RENAULT

Everything revolves around the Japanese request, accepted by the French, to reduce Renault's stake in Nissan's capital to 15%, the same percentage in the hands of the Japanese company in the Boulogne-Billancourt company: in short, the 2023 agreement (re)starts at sign of equality between the parties.

But what will the diamond do with the remaining 28.4% of Nissan that must be disposed of? He will not be able to sell it but will have to give it to a French trust fund, whose voting rights (dividends and proceeds from the sale of shares) will in the meantime be "neutralized". The sale will take place “if commercially reasonable for Renault in a coordinated and orderly process but without the obligation to sell within a pre-specified period of time”.

THREE PHASES AND THREE “DIMENSIONS”

The ambition of the agreement, which remains subject to the approval of the boards of Nissan and Renault, "is to strengthen the ties of the Alliance and maximize the creation of value for all with a three-phase approach", explains the note, the first of which is the relaunch of the partnership with "high added value operational projects" focused on "key" initiatives in Latin America, India and Europe and developed along "three dimensions: markets, vehicles and technologies".

NISSAN PUT CAPITAL IN AMPERES

The second direction smells of compromise, as here it is the Japanese who have accepted the French request for Nissan to enter as a "strategic shareholder" in Ampere, the new company created by the French with the spin-off of the traditional endothermic activities, those for electric mobility and digitisation, which requires capital. Finally, the Alliance's Operational Committee is expected to maintain its primary coordination role between the two partners.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/renault-e-nissan-ripartono-assieme-cosa-prevede-laccordo/ on Mon, 30 Jan 2023 14:37:39 +0000.