Nissan to strengthen ties with Renault, bares 3-stage approach

Nissan has announced that it will strengthen its ties with the Renault Group.

Per the Japanese automotive brand, it has reached an important milestone in its discussions with Renault Group on defining new foundations for its partnership.

Nissan said that the goal is to strengthen the ties of the Alliance and maximize value creation for all stakeholders with a three-stage approach.

The first of which, Nissan said, is “reloading the partnership with high-value-creation operational projects.”

According to the Yokohama-based brand, this step consists of key projects in Latin America, India, and Europe, which would be deployed along three dimensions: markets, vehicles, and technologies.

The second step, Nissan explained, is “enhancing strategic agility with new initiatives that partners can join.”

The second step will see Nissan make an investment in Ampere, the electric vehicle and software firm founded by the Renault Group.

Lastly, Nissan said that the third step is “a balanced governance and cross-shareholding to foster accelerated operational efficiencies.”

Under this third step, Nissan and the French automotive conglomerate will both hold a 15 percent cross-shareholding, with a lock-up obligation, as well as a standstill obligation.

Further, Renault Group would transfer 28.4 percent of Nissan shares into a French trust, where the voting rights would be “neutralized” for most of the decisions, but the economic rights (dividends and shares’ sale proceeds) would still entirely benefit to Renault until such shares are sold.

The agreements, Nissan stated, are being finalized and the transaction remains subject to the approval of the boards of directors of Renault and Nissan.

An announcement will be made by members of the Alliance (which are Nissan, Renault, and Mitsubishi) as soon as the board has made an approval.

Photos from Nissan 

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