Nissan and Renault will announce alliance restructuring – 07/19/2023 – Market

Nissan and Renault will announce in the coming days the restructuring of their partnership and the finalization of a deal, said three sources familiar with the matter.

The measure could end ten months of sometimes tense negotiations between the companies.

The automakers announced a deal in February and were aiming to finalize negotiations as early as March. As reported, the Japanese carmaker would acquire up to 15% of Renault’s new electric vehicle unit, Ampere, while Renault would reduce its stake, currently 43%, in Nissan.

The deadline was extended as senior Nissan executives and some directors disputed details of the deal, citing the need to better protect the company’s intellectual property, as reported by Reuters.

The delay has complicated Nissan’s effort to put its decades-long relationship with Renault on a more level playing field. Nissan executives are seeking to rebalance the alliance built by former company chairman Carlos Ghosn after his departure plunged the automaker into a period of turmoil.

Nissan has been working to set a lower cap on pledged investment at the Renault unit, below the 15% cap announced in February, two of the sources said. While the size of the investment will ultimately depend on Ampere’s value, Nissan is likely to be left with less than 10%, one said.

“Nissan and Renault are engaged in constructive and ongoing negotiations. We will make a statement in due course when the agreements are finalized,” the Japanese company said in a statement.

Renault did not comment. The French automaker has previously said it expects to list Ampere in an IPO (initial public offering) in the first half of 2024. Sources said the unit could be valued at up to 10 billion euros (R$53.7 billion).