5 percent
Renault wants to reduce its stake in Nissan. The first part of the share sale has now been completed. This is a relatively small step. Ultimately, the importance must be significantly reduced.
Renault and Nissan will continue on a more equal footing within the alliance. That is why Renault previously announced that it would eventually reduce its stake in Nissan from more than 43 percent to 15 percent. That is equal to the interest that Nissan has in Renault. This puts an end to the skewed ownership relationship that has been a source of friction between the two companies in recent years.
The share sale has now started. Renault is now selling about five percent of its equity stake in Nissan to its Japanese partner. The value of the share transaction is approximately 765 million euros, but according to Renault it will lead to a book loss of 1.5 billion euros. Nissan will cancel the purchased treasury shares.
The more than two-decade-old alliance between the two car manufacturers has come under severe pressure in recent years following the demise of former leader Carlos Ghosn. Ghosn was CEO of both Renault and Nissan and chairman of the alliance. In 2018, he was ousted as CEO and arrested in Japan over alleged financial misconduct at Nissan. At the end of 2019, he escaped Japan in spectacular fashion and fled to Lebanon via Turkey.
– Thanks for information from Autoweek.nl