Renault and Nissan reach final binding agreements
Renault Group and Nissan Strengthen Partnership with Strategic Investments
Renault Group and Nissan Motor Co. Ltd. have announced a series of agreements aimed at strengthening their partnership and maximizing value creation for each Alliance member. The agreements focus on extending the Alliance collaboration in three key areas: high-value-creation operational projects in India, Latin America, and Europe; enhanced strategic agility with new initiatives; and rebalanced Renault Group-Nissan cross-shareholdings and reinforced Alliance governance.
As part of the agreements, Nissan has confirmed its intention to become a strategic investor in Ampere, Renault Group's new EV and software entity in Europe. Nissan will commit to invest up to Euro 600 million, securing a board seat in the entity. The partnership is expected to generate numerous synergies, including cost efficiencies, regulatory compliance, and a broader range of EV products and powertrains.
One of the significant aspects of the agreements is the transfer of 28.4% of Renault Group's Nissan shares into a French trust. The entrusted shares will be voted neutrally, subject to limited exceptions. This move aligns with Nissan's electrification strategy, creating potential benefits and synergies for Nissan in Europe and other markets.
Renault Group would retain the economic rights from the entrusted Nissan shares until such shares are sold. The company has the flexibility to sell the Nissan shares held in the trust, within a coordinated and orderly process with Nissan, with Nissan benefiting from a right of first offer. This arrangement provides a solid base for reactivating business operations worldwide in key markets.
The agreements also aim to position Renault and its Alliance partners ahead of the starting grid for the EV and software race in Europe. They confirm the attractiveness of the project, allowing Renault Group to welcome Nissan as a strong partner in their upcoming EV and Software pure player Ampere.
Luca de Meo, CEO of Renault Group, stated that the agreements could generate hundreds of millions in value for Renault, Nissan, Mitsubishi, and stakeholders. He also welcomed Nissan as a strategic investor in Ampere, expressing his excitement about the potential benefits and synergies the partnership would bring.
Jean-Dominique Senard, Chairman of The Alliance, stated that the agreements signed strengthen the partnership and maximize value creation for each Alliance member. Makoto Uchida, President and CEO of Nissan Motor Co. Ltd., mentioned that the agreements will create additional value through initiatives aligned with Nissan's Ambition 2030 and electrification strategy.
The partners are considering new key projects in Latin America, India, and Europe that aim to deliver win-win, large-scale, and actionable benefits. The definitive agreements replace the current agreements governing the Alliance, including the Restated Alliance Master Agreement, the Alliance Equity Participation Agreement, and the Memorandum of Understanding of March 12, 2019.
Renault Group and Nissan have already announced their renewed commitment to Indian operations through new investment and vehicles. The agreements provide a significant step forward in the Alliance's efforts to accelerate the transition to electric mobility and strengthen their position in the global automotive industry.
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