Gulf Today

Renault to sell Nissan stake of about 2.5%


PARIS: Renault plans to sell a stake of about 2.5 per cent in Nissan shares to the Japanese car maker in a deal that could result generate up to 362 million euros ($392 million), the French firm said on Wednesday.

The share sale is its second as Renault looks to cut its Nissan stake to 15 per cent from around 43 per cent as the two firms reshape their longstandi­ng partnershi­p.

Renault sold a 5 per cent stake in Nissan back to the Japanese company in December.

The latest sale of up to 100,242,900 Nissan shares are part of the 24.63 per cent in Nissan’s capital that Renault has put into a French trust.

The sale will be implemente­d as part of a share buyback programme announced by Nissan, Renault said.

“This transactio­n will allow faster deleveragi­ng and supports the group’s determinat­ion to return to an investment grade rating,” Renault said in a statement.

Renault has the right to sell a further 180,447,100 Nissan shares that were offered but have not been bought back by the Japanese firm to third parties during a 180-day period.

As part of an agreement last year to reduce their alliance, Renault and Nissan aim to have cross-shareholdi­ngs of 15%.

French car maker Renault plans to invest 300 million euros ($323 million) in its assembly plant located in Sandouvill­e in northern France to make new-generation electric vans from 2026.

The company will add 550 staff to its 1,850 payroll at the plant over the next four years, it said in a statement.

The project to build a light van, designed in particular for last-mile delivery of parcels, is part of Renault’s electric vehicle unit Flexis, a joint venture with Sweden’s Volvo and French shipping and logistics giant CMA CGM.

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A view shows a Renault car showroom in Saint Petersburg, Russia.
Reuters ↑ A view shows a Renault car showroom in Saint Petersburg, Russia.

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