Nissan has announced that it has acquired approximately 5% of its own shares from Renault as both companies continue to rebalance their troubled partnership. In an official release, the Japanese carmaker said it had decided to acquire 195,473,600 shares offered by Renault, all of which will be cancelled on October 3, 2024.
The deal is valued at nearly 80 billion yen (about USD552 million or RM2.29 billion) and will be paid using Nissan’s net cash position, with the inflow of funds to Renault helping towards reducing the French carmaker’s debts and returning to an investment grade credit rating.
Renault said in its release that the share sale to Nissan will result in an estimated capital loss of 1.1 billion euros (RM5.1 billion), as the value of the stake is lower than previously reported on its balance sheet – this will be booked in “other operating income and expenses” and not impact the company’s operating income). A capital loss on disposal estimated at a maximum of 120 million euros (RM554 million) would also be booked.
Last year, Nissan and Renault announced a restructuring of their alliance after a rocky period triggered by the arrest of Carlos Ghosn as well as troubles brought on by the Covid-19 pandemic. The objective of the overhauled alliance agreement was to give the carmakers more autonomy, with both now having a cross-shareholding of 15%.
For many years, Renault had a 43.4% voting stake in Nissan, while Nissan held a 15% non-voting stake in Renault, which caused tension between both parties. This changed in November 2023 when Renault decided to transfer 28.4% (out of 43.4%) of Nissan shares into a French trust, while Nissan was able to vote with its 15% stake.
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it’s ok, whoever holds the shares doesn’t matter as both brands are failing.
never do business with the french. proton loss few times because of the french