The historic alliance of Renault and Nissan is equalized. The French automaker has reduced its stake in the Japanese company from 43% to 15% by transferring shares representing 28.4% of Nissan to a trust company, as announced this Wednesday. With this decision they intend to equalize their cross-shareholdings, so that each will have 15% of the other's capital.
United for 24 years, Nissan's push has led to tensions in recent years due to the disparity in share distributions. In February, the brands announced an adjustment in their participations through which Renault transferred part of its titles to a trust, where its voting rights were neutralized for decision-making, making their weights equal to the aforementioned 15%. In any case, Renault will not lose the economic rights, such as dividends, in what is transferred to the trust.
The French company is committed to selling the stake that has been set aside, but no deadlines have been set for doing so.
"This new chapter will be built on the solid foundations of a long-term partnership. It will maximize the creation of value for each of its members by laying the foundations for a new balanced, fair and efficient governance," said Jean-Dominique Senard, president of The alliance.
The relationship was already unbalanced in 1999, when Renault became the lifeline for Nissan, which at that time was in a situation of extreme difficulty due to the large accumulated losses. First Renault entered Nissan with an investment of about 4 billion dollars and later the Japanese brand took 15% of the French group, but until now it had never seen its voting rights recognized.
The relationship was in any case practically paralyzed after the arrest of Carlos Ghosn, former president of both firms and one of the architects of the alliance, in November 2018 for alleged fraud. The participation of the French State in Renault's shareholding with 15% also complicated relations, as local investment and employment prevailed.
Mitsubishi is also included in the alliance. Between the three firms they employ 375,000 people. Under their agreement, they collaborate in the development and manufacturing of several models, saving costs, sharing engines and in some cases being sold under each other's badge.
