Renault and Nissan recently announced that the French automaker would transfer 28.4% of Nissan’s stake into a French trust.
French multinational automobile manufacturer Renault and their Japanese counterpart Nissan have agreed to a stake restructuring in their longstanding alliance. According to this agreement, Renault will slash its stake in Nissan, transferring over 28% of the Japanese automaker’s shares into a French trust.
According to a joint announcement by both companies, the trust’s voting rights would be “‘neutralized’ for most of the decisions.” However, the economic rights, which constitute dividends and shares’ sale proceeds, would still benefit Renault until such shares are sold. The French automobile manufacturing giant would also instruct the trustee to offload the shares if they prove commercially reasonable. Also, any prospective share sale would occur as part of a coordinated, streamlined, and orderly process.
Renault-Nissan Stake Development Comes to Decades-Old Alliance
The Renault-Nissan stake slash agreement represents a sweeping restructuring of an alliance in place since 1999. This development, subject to board approval, could see Renault’s shareholdings in Nissan reduced to 15% from 43%. In addition, the restructuring could reduce Renault’s stake in Nissan down to equal the Japanese automaker’s current stake in Renault.
According to both automobile manufacturing giants, the deal allows each to “freely exercise the voting rights attached to their 15% direct shareholdings, with a 15% cap.” Renault and Nissan also revealed that the deal comes after several months of intense deliberations.
Pursuant to the agreement, Nissan would also invest in Renault’s electric vehicle (EV) arm, Ampere. In addition, the two companies could undertake “high-value-creation operational projects” in several global regions. These regions include Latin America, India as well as Europe.
Renault Metaverse Aspirations
Last September, Renault partnered with Web3 mainstay The Sandbox to offer metaverse-inspired automotive services. Under this collaboration, users in the metaverse could experience vehicles in the virtual space. In addition, the Renault-Sandbox venture focused on virtual reality, gaming, non-fungible tokens (NFTs), and the blockchain.
Weighing in on the initiative at the time, Renault Korea chief executive officer Stephane Deblaise said:
“The new digital journey that our company is preparing is intended to provide clients with an expanded brand experience and familiarize them with the brand.
Cindy Lee, CEO of The Sandbox Korea, also commented on the alliance with Renault. Describing the joint venture as providing innovative experiences that marry vehicles with digital assets, Lee also added at the time:
“This partnership is an excellent example of a collaboration The Sandbox can develop without any industrial boundaries.”
Google Ties
Renault also consolidated its partnership ties with Google (NASDAQ: GOOGL) a month after The Sandbox collaborative development. Last November, both platforms explained that the enhanced partnership would design and deliver the “Software Defined Vehicle” SDV digital framework. This framework poses a new frontier of auto cars with functionalities totally hinged on software.
Meanwhile, Nissan remains on course to achieve electrification in its line of vehicles.
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