Nissan Motor said it had reached a “definitive” agreement with Renault Group, following 10 months of negotiations on the future of their alliance.
The final agreement focused on extending Alliance collaboration in three areas:
• High-value-creation of operational projects in India, Latin America and Europe;
• Enhanced strategic agility with new initiatives that partners can join;
• Rebalanced Renault Group-Nissan cross shareholdings and reinforced Alliance governance.
The two partners signed a binding framework agreement in February which provided for Renault to reduce its stake in Nissan from 43.4% to 15% in line with Nissan’s holding in Renault.
This was carried through into the final agreement, with Renault undertaking to transfer 28.4% of its shares in Nissan into a French trust. It would continue to receive economic benefits from these shares, including dividends, until it instructs the trustee to sell these shares at a “commercially reasonable” time.
Renault would forego the voting rights associated with these shares with the voting rights of both companies to be capped at 15% in line with their direct shareholdings.
The Alliance partners are considering new key projects in Latin America, India and Europe that aim to "deliver win win, large scale and actionable benefits". Among these, they have already announced renewed commitment to Indian operations through new investment and vehicles.
In the second area of enhanced cooperation, the partners agreed to strengthen their existing electrification and low emission strategy by investing and collaborating in respective member company projects which could provide incremental value to each individual business.
As part of this cooperation, Nissan confirmed it would become a strategic investor in Ampere - Renault Group’s new electric vehicle (EV) and software operation in Europe.
Nissan has committed investment up to EUR600m in this company and would gain a board seat. It said the move was in line with its electrification strategy and had the potential to create multiple potential benefits and synergy which complement Nissan's own goals and initiatives in Europe and other potential markets.
Alliance chairman Jean Dominique Senard said in a statement: “The agreements allow us to step into the next chapter of the Alliance. They strengthen our long-standing partnership and will maximise value creation for each Alliance member. This also lays the foundations for a new balanced, fair, and effective governance."
Nissan CEO Makoto Uchida said: “With the finalisation of the definitive agreements, we have entered the next phase of collaboration with Renault and Mitsubishi Motors in mutually beneficial areas of innovations. This will create additional value through initiatives aligned to Nissan's Ambition 2030 and electrification strategy. The investment opportunity in Ampere complements and strengthens Nissan’s ongoing electric push in Europe and will deliver numerous synergies, including cost efficiencies, regulatory compliance and a broader range of EV products and powertrains."
Renault Group CEO Luca de Meo said: “These agreements provide us with a solid base to reactivate business operations worldwide in key markets, with the potential to generate hundreds of millions in value for [the Alliance] and stakeholders. We welcome Nissan as a strong partner in Ampere."
