Renault SA said Monday that it and Nissan Motor Co. have reached a milestone in their talks over a reshaping of their 20-year-old alliance, which would involve the European car maker transferring 28.4% of shares in its Japanese partner into a French trust.
would invest in Renault’s
electric-vehicle business Ampere, the French company said.
Renault said it and Nissan would retain a 15% cross-shareholding and be able to freely exercise the voting rights attached to their direct shareholding, with a 15% cap. As a result, Renault said it would transfer 28.4% of Nissan shares into a French trust, where the voting rights would be neutralized for most of the decisions it would still receive economic benefits such as dividends and shares’ sale proceeds until such shares are sold.
Renault said it would instruct the trustee to sell the Nissan shares if commercially reasonable, but that it would have no obligation.
The agreements are being finalized and the transaction remains subject to the approval of the companies’ boards of directors, Renault said.
The Wall Street Journal reported last week that Renault and Nissan were nearing a deal to shake up their alliance.
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