Renault to Dilute its Holding in Nissan by Offloading 2.5% Equity

Renault has disclosed plans to divest approximately 2.5% of its stake in Nissan shares to the Japanese automaker in a transaction that could yield up to €362 million (US$392 million), the French company announced on Wednesday. This move marks Renault's second share sale as part of its strategy to reduce its stake in Nissan from approximately 43% to 15% as the two companies reconfigure their longstanding partnership. Previously, Renault had sold a 5% stake in Nissan back to the Japanese company in December.

The latest divestment involves up to 100,242,900 Nissan shares, representing part of the 24.63% stake in Nissan's capital that Renault has placed into a French trust. This share sale will be executed within the framework of a share buyback program initiated by Nissan, Renault clarified.

Renault emphasized that this transaction aims to accelerate deleveraging efforts and demonstrates the company's commitment to restoring an investment-grade rating. Additionally, Renault retains the option to sell an additional 180,447,100 Nissan shares that were offered but not repurchased by Nissan to third parties over a 180-day period.

Under an agreement reached last year to restructure their alliance, Renault and Nissan aim to establish cross-shareholdings of 15%. This move represents another step in their collaborative efforts to realign their partnership and streamline their operations.