Renault, which already owns 36.8 percent of Nissan, said it will spend 215.9 billion yen ($US1.6 billion) to increase its stake in Japan’s third largest car maker to 44.4 percent tomorrow to expand their alliance, according to Bloomberg News.
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Renault will buy the extra Nissan shares at 400 yen each, as agreed in 1999 when it acquired its initial stake, Bloomberg said, adding that the companies said in October that they would strengthen their ties, with Nissan buying 15 percent of Renault and the French firm raising its Nissan ownership a year earlier than anticipated.
Bloomberg said Nissan expects to report a second year of record profit under its former Renault executive president Carlos Ghosn.
However, the news agency said, Renault is looking to the alliance to avoid a loss this year – second-half 2001 profit fell 68 percent to 272 million euros, including 220 million euros from Nissan.
Renault bought its 37 percent stake in Nissan in 1999 for $5.4 billion and that stake is worth $9.6 billion today, Bloomberg News said.
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By GlobalDataThe news agency added that in 1999, Renault also acquired warrants for 539.75 million shares of Nissan, which it will exercise tomorrow.
