According to overseas media reports, Renault is selling about 5% of Nissan’s shares for 765 million euros as part of Nissan’s share buyback plan.
This move is another step after Renault finally decided to reduce its stake in Nissan last month. Renault said on December 12 that the share sale was worth about 765 million euros (about 824 million U.S. dollars), but Renault would suffer a capital loss of 1.5 billion euros.
Nissan will repurchase the shares at 568.5 yen per share, which was Nissan’s stock price when the Tokyo Stock Exchange closed on December 12. Although Nissan’s share price has risen 36% this year, its current market value is only half of what it was at the beginning of 2017.
The two automakers ultimately aim to adjust their mutual shareholding ratio to 15%, thus resetting the previous decade-long automaking alliance. The partnership between Nissan and Renault took a major hit in 2018 due to the arrest of former chairman Carlos Ghosn. Since then, the two companies have drifted apart and developed their own development plans.
Funds from the sale of Renault’s stake in Nissan will support Chief Executive Luca de Meo’s push to develop Renault’s electric vehicle and software unit Ampere. He plans to spin off the unit and take it public as an independent entity in April or May 2024. Nissan also agreed to invest in Ampere.
