Renault slashes Nissan stake as the automakers overhaul their decades-long alliance

Automobile giants Renault and Nissan connected Monday agreed to restructure their decades-long alliance, successful a determination that volition spot Renault transportation 28.4% of Nissan shares into a French trust, the companies said.

Voting rights successful the spot would beryllium "'neutralized' for astir of the decisions, but the economical rights (dividends and shares' merchantability proceeds) would inactive wholly payment to Renault until specified shares are sold," according to the Monday announcement. Renault would instruct the trustee to merchantability those shares if "commercially reasonable" and arsenic portion of a "coordinated and orderly process."

The woody inactive pends committee approvals, but would spot Renault's shareholdings successful Nissan reduced from astir 43% to 15%, bringing its involvement down to adjacent the Japanese company's existent involvement successful Renault.

Both companies would beryllium capable to "freely workout the voting rights attached to their 15% nonstop shareholdings, with a 15% cap," the companies said.

The carmakers archetypal signed their conjugation successful March 1999. The Monday woody comes aft months of aggravated discussions.

As portion of the agreement, Nissan would besides put successful Ampere, Renault's electrical conveyance arm, portion the 2 companies volition embark connected "high-value-creation operational projects" successful Latin America, India and Europe.