Nissan Looking To Buy Back Shares From Renault
Nissan is urging it’s partner Renault to reduce stake or they may raise funds
Reuters has reported that Nissan is pressuring their French partner, Renault, to reduce its stake in the Japanese automaker as much as possible. The ideal number proposed is 15 percent. An anonymous source also stated that the Japanese brand may consider raising their funds to buy back shares from Renault. The full article is linked here.
These demands are allegedly made in exchange for Nissan agreeing to invest in a new Renault unit which is being set up to house electric vehicle (EV) assets, the anonymous source claimed.
Renault currently owns 43 percent of Nissan and the latter brand wants their French ally to cut down their stake to 15 percent to draw level with Nissan’s share in the alliance partner. The stake sale will have no effect on the business alliance of the two brands and Nissan may need to raise their funds to buy back shares from Renault.
Moreover, Renault is still continuing with their plans to separate their EV and internal combustion engine (ICE) vehicle businesses to catch up to their rivals like Tesla and Volkswagen in the green mobility sphere. The French brand also plans to reveal a thorough blueprint for their new EV entity at capital markets day this autumn.
On top of that, another source claimed that Renault’s CEO, Luca de Meo, will supposedly attend the Formula 1 race in Suzuka which will give him the opportunity to speak with his Nissan counterpart, Makoto Uchida amid the intensifying negotiations on both ends.
That former source also stated that while these talks between Nissan and Renault are more than likely to produce no solid results, it could give both parties the opportunity to finalize a deal before 8 November 2022, which is also coincidentally when de Meo intends to present an update to his strategy.
Additionally, alliance partners Nissan and Mitsubishi remain tight-lipped on whether either of the brands plan to play a role in Renault’s future EV unit. The second source has also claimed that Mitsubishi was pondering whether or not to take a single-digit percentage stake in Renault’s EV unit but nothing is set in stone yet.
So what does all this mean for us? Well on the surface nothing is to change, Renault and Nissan are still going to continue on as they have all this time but the former brand will just have a significantly smaller say in what the latter company does but honestly who knows what is really going on behind the scenes?
At the end of the day, I sincerely hope both brands reach a compromise fast as I would hate to see either Nissan or Renault end up losing out on key technology since their cars are great as they are but would suffer a major dip in quality otherwise.
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