Renault reportedly considering cutting stake in Nissan to support transition to electric cars
Switch to EVs
Renault is said to be considering selling some of its Nissan stake in a deal that could raise billions of euros for its switch to lithium battery powered electric vehicles and ease longstanding tensions with alliance partners
Nissan itself may be willing to buy some of Renault’s stake, said the people, who asked not to be identified because the discussions are not public.
Renault currently holds 1.83 billion shares in Nissan Motor, with a stake of 43%. Renault may also seek other acquirers for some of its Nissan stake, the people said.
Spokespeople for Renault and Nissan declined to comment. As of 11:35 on April 22, Paris time, Renault’s shares rose as much as 8.3%.
By reducing its stake worth 7.1 billion euros, Renault will strike a delicate balance: trying to rebalance a 23-year-old alliance without destroying it.
The unbalanced cross-shareholding structure – Nissan owns only 15 percent of Renault and lacks voting rights – has been a pain point for Nissan executives over the past few years.
The sale could help fund a major restructuring package that Renault Chief Executive Luca de Meo began drafting in February. The company is considering spinning off its electric vehicle business and listing it separately. Its traditional business may then form an alliance with a partner.
One option is China’s Zhejiang Geely Holding Group, the people said. Earlier this year, Renault and Geely reached a joint production agreement at a South Korean plant, and both sides have said they may also cooperate in China. A Geely representative declined to comment
