Renault and Nissan Agreement Comes into Effect

Renault Group and Nissan Motor Co Announce New Alliance Agreement

On November 8th, Renault France and Nissan Motor Co, Ltd announced that a new alliance agreement has officially taken effect. The agreement, which includes a mutual 15% shareholding, marks a significant milestone for both companies.

The new contract, which was first announced in February of this year, has now received all necessary regulatory approvals and is set to reshape the equal capital structure between the two companies. This will allow for increased cooperation in regions such as Latin America, India, and Europe.

Key changes to the capital structure include a reduction of Renault’s stake in Nissan from 43.4% to 15%, while Nissan’s stake in Renault will remain at 15%. Both companies will have the ability to exercise the 15% voting rights attached to their shares.

Furthermore, Renault’s 28.4% stake in Nissan will be held in a French trust company, with voting rights being exercised neutrally, with some exceptions. Additionally, any potential sale of Nissan shares by Renault will require approval from Nissan, with Nissan being the preferred candidate for the sale. Until the sale, Renault will retain its economic rights to dividends and profits from the sale.

Alliance Chairman’s Statement

With the new agreement now in effect, Alliance Chairman Jean-Dominique Senard emphasized the significance of this development, calling it a “very important step” for the three-company alliance, which includes Mitsubishi Motors (7211.T). He highlighted that this agreement lays the groundwork for a new, fair, long-term, and effective partnership that creates value for all stakeholders.

Executive Responses

Nissan President and CEO Makoto Uchida expressed optimism about the new agreement, stating that it will support the company’s business strategies, including electrification, and open up new growth opportunities, ultimately increasing the value of the alliance as a whole. Renault CEO Luca DeMeo lauded the collaboration in Europe and India, highlighting the creation of significant value for each company through a capital allocation policy.

Additionally, Mr. DeMeo welcomed Nissan’s commitment to invest up to 600 million euros and Mitsubishi Motors’ commitment to invest up to 200 million euros in Renault’s new electric vehicle company.

Conclusion

The new alliance agreement between Renault and Nissan represents a significant shift in their partnership, with both companies expressing optimism about the opportunities it will bring. As the automotive industry continues to evolve, this alliance aims to leverage synergies and drive value creation across multiple regions.

Editor: Maki Shiraki

Thomson Reuters “Principles of Trust”

November 8th: Renault France and Nissan Motor Co, Ltd announced on the 8th that a new alliance agreement has come into effect. The photo shows the logos of Renault and Nissan, taken on February 6 in Saint-Nazaire, France (2023 Reuters / Stephane Mahe)

TOKYO (Reuters) – France’s Renault Group ( RENA.PA ) and Nissan Motor Co ( 7201.T ) announced on the 8th that a new alliance agreement has entered into force. All necessary regulatory approvals were obtained for the final agreement signed by both companies, including a mutual 15% shareholding.

In terms of the content of the new contract, the two companies reached an agreement in February this year, and it was announced in July that they had completed the conclusion of the final contract. In addition to revising the equal capital structure, we will promote cooperation in Latin America, India and Europe.

Regarding the review of the capital structure, Renault’s stake in Nissan will be reduced from 43.4% to 15%, and Nissan’s stake in Renault will remain at 15%. Both companies will be able to freely exercise the 15% voting rights attached to their shares.

Renault’s 28.4% Nissan shares will be held in a French trust company, and the voting rights of the shares will be exercised neutrally, with some exceptions. If Renault were to sell its Nissan shares, Nissan’s approval would be required, and Nissan would be the best candidate for the sale. Until the sale, Renault will retain its economic rights to dividends and profits from the sale.

With the new agreement coming into effect, Alliance Chairman Jean-Dominique Senard said in a statement that it was a “very important step” for the three-company alliance, which includes Mitsubishi Motors (7211.T), and that the all stakeholders in ” “This is the basis for a new, fair, long-term and effective partnership that creates value.”

Nissan President and CEO Makoto Uchida said that in order to support the company’s business strategies, including electrification, “it will enable us to pursue new growth opportunities and, as a result, increase the value of the alliance as a whole.” “It will lead to.”

Renault CEO Luca DeMeo praised the collaboration in Europe and India as “creating hundreds of millions of euros of value for each company.” capital allocation policy.”

Mr DeMeo also welcomed the decision that Nissan will invest up to 600 million euros and Mitsubishi Motors will invest up to 200 million euros in Renault’s new electric vehicle company.

Maki Shiraki Editor: Shiho Tanaka

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