Renault and Nissan finalize binding contracts
Renault Group and Nissan Reinforce Partnership with New Investments and Agreements
In a significant move, the Renault Group and Nissan have announced their renewed commitment to their Indian operations and global partnership, with new investments and strategic agreements.
The partnership, according to Luca de Meo, CEO of Renault Group, provides a solid base for reactivating business operations worldwide and generating hundreds of millions in value for the partners. De Meo also welcomed Nissan as a strong partner in their upcoming EV and Software pure player, Ampere.
As part of the agreements, Renault Group will transfer 28.4% of its Nissan shares into a French trust, while Nissan will transfer its equivalent shares to the Japanese trust bank, Sumitomo Mitsui Trust Bank. This transfer allows Nissan to exercise its voting rights attached to its shareholding in Renault Group, capped at 15% of the exercisable voting rights, with both companies able to freely exercise their voting rights within such limit. The entrusted shares will be voted neutrally, subject to limited exceptions.
Nissan has confirmed its intention to become a strategic investor in Ampere, Renault Group's new EV and software entity in Europe. The company has committed to invest up to Euro 600 million in Ampere, which is expected to complement and strengthen Nissan's ongoing electric push in Europe. The investments are expected to deliver numerous synergies including cost efficiencies, regulatory compliance, and a broader range of EV products and powertrains.
The agreements aim to reinforce Alliance governance and provide strategic agility for the partners in today's rapidly evolving environment. They focus on extending the Alliance collaboration in three areas: high-value-creation operational projects, enhanced strategic agility, and rebalanced governance.
The partners are considering new key projects in Latin America, India, and Europe that aim to deliver win-win, large-scale, and actionable benefits. Makoto Uchida, President and CEO of Nissan Motor Co. Ltd., mentions that the agreements will create additional value through initiatives aligned with Nissan's Ambition 2030 and electrification strategy.
Jean-Dominique Senard, Chairman of The Alliance, states that the agreements signed strengthen the partnership and maximize value creation for each Alliance member. The agreements also aim to reinforce Alliance governance, providing a solid foundation for the continued collaboration between Renault Group and Nissan.
In conclusion, the renewed commitment between Renault Group and Nissan through new investments and strategic agreements is a significant step towards strengthening their partnership and enhancing their electric vehicle and software capabilities. The partnership is expected to deliver numerous synergies and benefits, particularly in Europe, as both companies continue to push forward with their electrification strategies.
