It is expected that Renault will sell 5% of its shares to Nissan. Specifically, the manufacturer cars France will sell 211 million Nissan shares and if calculated at the price of 568 5 yen (3 91 USD) closing the trading session on December 12 on the Tokyo stock market, this transaction will be worth Price 765 million euros (825 million USD).
According to the plan, the percentage of shares that Renault owns in Nissan will decrease from more than 43% to 15%, equal to the level of the Japanese automaker ownership in Renault.
It is unclear when the remaining shares will be sold, but Bernstein analysts have shared with news agency Reuters that the Nissan selling a 28% stake could help the company increase its cash balance by 4.2 billion euros ($4.5 billion) if calculated at current market prices.
Through the new alliance Renault and Nissan will cross-own 15% of each other’s shares. Nissan’s 15% stake in Renault will also be converted from non-voting shares to voting shares.
In exchange for reducing shares, Renault will receive an investment from Nissan. Investing up to 600 million euros (663 million USD) in the division electric vehicle Ampere EV.
Renault CEO Luca de Meo wants Ampere ” listed” around March to May next year. The French automaker had expected this to happen this year and aimed to reach a market capitalization of about 10 billion euros ($11 billion), but these plans have been postponed.
Formed in 1999, Renault-Nissan was once considered a standard for alliance models in the auto industry, then admitted Mitsubishi Motors in 2016.
In 2017 This alliance has grown to become world’s largest automobile manufacturer with total sales reaching 10 61 million car; of which new member – Mitsubishi contributed 1,03 million vehicles. Nissan achieved record sales of 5,82 million vehicles and Renault sold 3,76 million vehicles.
Volkswagen achieved sales of 10,53 million vehicles, ranking 2nd. also Toyota fell to third place with 10,2 million vehicles sold.
The Renault – Nissan – Mitsubishi alliance once intended to turn its production scale into an advantage and use it to double savings to $12 billion by 2022 with the goal of increasing sales to 14 million vehicles.
The relationship between Renault and Nissan is not is a merger or acquisition. These two businesses are “tied” together through a cross-shareholding agreement. Renault owns 43 4% of Nissan’s shares and Nissan owns 15% of Renault’s shares.
The Renault – Nissan alliance develops in such a way that each company operates according to the financial interests of the other while still maintaining its own brand and independent corporate culture. The goal of the combination is to increase the economics of both Renault and Nissan without “swallowing” the personality of either one.
This model has proven effective for nearly two decades But it all collapsed in 2018 when former Chairman Carlos Ghosn was arrested on charges of income tax evasion.
At that time, he was the head of both Renault and Nissan, with a role in connecting three manufacturers together.
He was accused of not declaring his remuneration of about 9 billion yen in the 8 years ending March 2018 (equivalent to 83 million USD at the current exchange rate). that).
This incident has made the Renault – Nissan – Mitsubishi alliance no longer as effective as before.
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