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Renault, Nissan near landmark deal to reshape alliance

The pact would allow the French carmaker to proceed with a planned carve-out of its electric-vehicle business. Both sides are set to sign a non-binding agreement after details were largely finalized late last week, said the person, who asked not to be identified because the plans aren’t public.

October 19, 2022 / 07:45 IST
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The unveiling of the Renault SA 4Ever Trophy all-electric concept vehicle on the opening day of the Paris Motor Show in Paris, France, on Monday, Oct. 17, 2022. Nissan Motor Co. is willing to invest as much as $750 million in Renault’s planned electric-vehicle business, in exchange, the French manufacturer is open to paring its ownership of Nissan to 15% over time.

Renault SA is in the final stages of concluding a deal this week to reduce its stake in Japanese partner Nissan Motor Co. and reshape their two-decades-old alliance, a person familiar with the negotiations said.

The pact would allow the French carmaker to proceed with a planned carve-out of its electric-vehicle business. Both sides are set to sign a non-binding agreement after details were largely finalized late last week, said the person, who asked not to be identified because the plans aren’t public.

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Although an event is being planned in Tokyo on Nov. 15 to announce the deal, discussions are ongoing and a final agreement could still be delayed, people familiar with the talks said. Shares of Renault rose as much as 3.2% in morning trading on Euronext.

Under the plan, the French carmaker will reduce its ownership of Nissan over time to 15% from the current 43%. In return, Nissan will invest $500 million to $750 million for a stake of about 15% in Renault’s electric-vehicle business, code-named Ampere, which is being split from the combustion-engine and powertrain operations by Renault Chief Executive Officer Luca de Meo.