Automobile manufacturer Renault Group signed a new alliance agreement with peer Nissan Motors Co on Wednesday, while it replaced four former agreements governing alliance.
French based car maker said the agreement established a cross-shareholding arrangement of 15%, accompanied by lock-up and standstill obligations. Each of the partners will be able to exercise 15% voting rights attached to their own shareholding, said the firm.
Renault said it has transferred 28.4% (out of 43.4%) of Nissan shares into a French trust, where it will be voted neutrally, subject to limited exceptions. The company said Renault will benefit from the economic rights from Yokohama, Japan-based company’s shares until they are sold.
Renault Group said it may instruct the trustee to sell shares of peer, but it holds no obligation to do so within a specific pre-determined period of time. Also, it has all flexibility to sell shares of Nissan held in trust within a coordinated and orderly process, in which the peer or a designated third party benefit from a right of first offer.
Kiger maker said no damage will be recorded in Renault Group’s financial statements due to transfer of owner of Sunny shares into the trust.
Makoto Uchida, chief executive officer of Nissan Motor said, “Based on this equal footing, Nissan will continue to harness our core competencies and be more agile to explore further growth opportunities that support our business strategy, especially through initiatives aligned to Nissan’s Ambition 2030 and electrification strategy, while continuing to generate greater value for the wider Alliance.”
