Nissan plans to reduce its stake in Renault from 15% to 10% to raise funds for the development of new models in a difficult market environment. This was announced by the company's CEO Ivan Espinosa.
An agreement between Nissan and Renault to reduce the minimum mutual share was reached in March. According to the terms, any transactions with shares must be agreed with the partner and provide for the right of pre-emptive refusal.
The sale of a 5% stake in Renault will allow Nissan to raise about 100 billion yen (about 640 million US dollars) at current prices. The funds received will be used for the development of the model range and technological innovations.
According to the LSEG, Nissan currently owns 15% of Renault's shares. The share reduction will be part of the company's broader strategy to strengthen its financial stability and modernize its product line.
Information about the impending deal appeared against the background of personnel changes at Renault — earlier it became known about the departure of the company's CEO Luca DeMeo, who intends to focus on work outside the automotive industry.
