Two gigantic motor makers Nissan and Renault have reached an agreement and the French maker will now slash its stake in Nissan as part of a deal rebalancing the rocky alliance.
The two companies announced the news on Monday and it is announced that the deal is set to see Nissan take a stake in Renault’s new electric vehicle venture Ampere.
Although the size of the investment was not immediately announced, BusinessTech Africa is informed that the deal follows months of painstaking negotiations and repeated delays.
The carmakers called Monday’s announcement “an important milestone” in “discussions on defining new foundations for their partnership”.
“The agreement is intended to strengthen the ties of the alliance and maximise value creation,” reports IOL.
“Renault will reduce its stake from 43.4 percent to 15 percent, the same size as Nissan’s stake in its French counterpart, in what the firms said would produce a balanced governance.
“Nissan will also invest in Ampere, “aiming to become a strategic partner”, the firms said, without specifying how large the Japanese carmaker’s stake would be.”
Back in November, Renault announced that it would split its operations in two – Ampere, and a separate subsidiary for petrol, diesel, and hybrid cars that will pair up with China’s Geely.
However, there were concerns at Nissan about future technology transfers to the Chinese carmaker, as well as details over the sharing of electric vehicle intellectual property, which complicated the negotiations.
This website has also gathered that the agreement is expected to be signed next week following board approval from both sides.
