Renault Advances Deleveraging Efforts with Nissan Share Sale
In a strategic move to reshape their longstanding partnership, French automaker Renault (RENA.PA) has announced its intention to sell approximately 2.5 percent of its stake in Nissan (7201.T). This transaction is expected to generate as much as 362 million euros ($392 million), marking a significant step in Renault’s deleveraging process.
This sale represents the second occasion on which Renault has reduced its holdings in the Japanese carmaker, following a previous divestment of a 5 percent stake back to Nissan in December. The shares, totaling up to 100,242,900, are part of the 24.63 percent that Renault placed into a French trust. The move aligns with a share buyback program announced by Nissan and reflects Renault’s commitment to improving its financial standing.
Renault’s statement highlighted the importance of the sale in accelerating the company’s deleveraging and bolstering its ambition to regain an investment grade rating. The firm retains the option to sell an additional 180,447,100 Nissan shares, which were offered but not repurchased by Nissan, to third parties within a 180-day timeframe.
The recalibration of the Renault-Nissan alliance is set to culminate in mutual cross-shareholdings of 15 percent, as agreed upon last year. This realignment underscores both companies’ efforts to streamline their partnership while maintaining strategic collaboration.
The automotive industry closely watches these developments, as they signify a pivotal shift in one of the longest-standing and most significant alliances in the sector. With the current exchange rate standing at 1 dollar to 0.9240 euros, Renault’s latest financial maneuver is poised to enhance its balance sheet and set a new course for the Franco-Japanese automotive collaboration.
