Renault Advances Deleveraging Efforts with Nissan Share Sale
In a strategic move to reshape their alliance, French automaker Renault (RENA.PA) has announced its intention to sell approximately 2.5 percent of its stake in Japanese counterpart Nissan (7201.T). This transaction is expected to generate as much as 362 million euros ($392 million), according to a recent statement from the company.
The decision marks Renault’s second divestment of Nissan shares, following a previous sale of a 5 percent stake back to Nissan in December. The latest disposal involves up to 100,242,900 shares from the 24.63 percent holding that Renault placed in a French trust. This action is part of a broader share buyback program initiated by Nissan.
Renault’s strategic sale is not only aimed at restructuring the partnership with Nissan but also at bolstering its financial position. “This transaction will allow faster deleveraging and supports the group’s determination to return to an investment grade rating,” Renault elaborated in its statement.
Furthermore, Renault retains the option to sell an additional 180,447,100 Nissan shares, which were not repurchased in the buyback scheme, to third-party investors within a 180-day timeframe.
The two automotive giants have been working towards equalizing their cross-shareholdings to 15 percent each, as part of an agreement made last year to recalibrate their long-standing alliance. This latest share sale by Renault is a significant step towards achieving that balance and underscores the ongoing evolution of the Renault-Nissan partnership.
With the current exchange rate, the deal’s value equates to approximately 0.9240 euros per dollar, reflecting the global financial landscape’s influence on such international transactions.