Nissan considers raising Renault stake despite fear of French role
A bigger stake is one of many options Japanese automaker is studying on back of an escalating stand-off with Paris
Nissan is considering raising its stake in Renault, its French partner, from 15 per cent to 25 per cent or more amid concerns about the French government’s growing influence over the alliance.
A bigger stake is just one of various options the Japanese automaker is considering on the back of an escalating standoff with Paris, which this year bought additional shares in Renault to push through arrangements that would give long-term investors double voting rights.
No decision has resulted from an extraordinary board meeting Nissan held on Monday to discuss the 16-year alliance, sources said. Executives at Nissan, which was close to bankruptcy in 1999 but is now the bigger partner, think it is unfair that Renault wields effective control of the Japanese firm through a 43.4 per cent stake, while Nissan’s 15 per cent stake in Renault carries no voting rights.
When the French double voting comes into effect in April 2016, the state will hold about 30 per cent of the voting rights at Renault. The French government’s move to increase its stake in the carmaker to almost 20 per cent in April previously exposed fundamental tensions in the alliance between Renault and Nissan.
Under Japanese law, raising Nissan’s stake in Renault to at least 25 per cent would remove Renault’s voting rights in the Japanese firm. Nissan hopes the move will help to block the French government from having undue influence over its operations.