January 30, 2023 at 09:55
Hong Kong CNN —Carmakers Renault and Nissan have agreed to restructure their longstanding partnership, with the French company whittling down its stake in the Japanese firm to 15%.
Under the agreement, Renault will transfer 28.4% of its shares in the Yokohama-based company into a French trust.
Voting rights for that stake will be “neutralized” for most decisions, Nissan said in a statement, although Renault will continue to reap the financial benefits from the shares unless they are sold.
Renault (RNLSY) and Nissan (NSANF) will each retain a 15% stake in one another’s businesses through a cross-shareholding agreement, with voting rights.
Previously, Nissan (NSANF) had held a 15% non-voting stake in the French company, while Renault (RNLSY) owned about 43% of Nissan (NSANF).
The move marks a significant milestone in the 24-year-old auto alliance.
The collaboration has typically allowed the companies to share production and technology, and ultimately save billions of dollars a year.
Ghosn, who had brought the three automakers together, was arrested in Japan, where prosecutors accused him of financial crimes.
More recently, Renault and Nissan disclosed that they were rethinking the nature of their relationship.
Last October, both companies said that they were “engaged in trustful discussions” about the future of the alliance.
In its Monday statement, Nissan said the two would continue to work together on projects in Europe, India and Latin America.
The Japanese automaker will also invest in Ampere, Renault’s recently formed electric vehicle and software business, it added.