Renault Reduces Voting Rights In Nissan As New Agreement Comes Into Force

The carmakers announced the new Alliance Agreement has come into force with effect from November 8, 2023.

By Carandbike Team

1 mins read

Published on November 8, 2023

Highlights

Renault transfers 28.4 per cent of its holdings in Nissan to French Trust
Renault to continue to receive monetary benefits from transferred shares
Renault-Nissan eyeing new investment for Indian market

Having announced a new alliance agreement earlier in the year, the Renault Group and Nissan today announced that the agreement has come into force. The new agreement brings a change in dynamics between the alliance partners with both companies now holding just 15 per cent voting rights in each other.

Also read: Renault-Nissan Alliance Reaffirms Commitment To India Operations

The Renault Group said that it had transferred 28.4 per cent of its shares in Nissan to a French trust that would be a neutral member of the alliance. Renault previously held a 43.4 per cent stake in Nissan which will now be reduced to the agreement-mandated 15 per cent. The company however said it would continue to receive full monetary benefits from the shares entrusted to the Trust including dividends and proceeds from the sale of said shares.

Renault and Nissan have eyed major investments into its India operations to roll out as many as 6 new models in the coming years.

Jean-Dominique Senard, Chairman of the Alliance, said: “We are delighted to announce today the effectiveness of the New Alliance agreement signed on at the end of July 2023. This is a very important step for Renault Group, Nissan, and Mitsubishi Motors, and lays the foundations for a new fair, long-standing and effective partnership that will create value for each Alliance member and for all our stakeholders.”

Also read: Renault Announces 8 New Global Models; 3 Are Likely To Come To India

“We are now effectively entering this new era of the Alliance with a pragmatic and business-oriented approach. Our joint projects in Europe, Latin America and India will strengthen our partnership and generate hundreds of millions of euros in value for each partner while being mutually beneficial in the field of innovation. We are also very proud to welcome Nissan and Mitsubishi Motors as strong partners in Ampere, our EV and software business, confirming the attractiveness of our assets,” said Renault Group CEO, Luca de Meo.

The two companies earlier in the year announced a new investment into its joint Indian operations with plans to launch up to six new models in the country. The alliance planned to invest Rs 5,300 crore into its operations in the country which would see the introduction of a host of new products including electric vehicles.