Nissan and Renault are nearing a “historic” rebalancing of their automotive alliance and a deal is likely to be announced in the coming weeks, a source close to the talks told France-Presse (AFP) today, Jan. 17.
The Japanese and French auto giants have been wrestling with changing the shape of their partnership for months, including discussions to cut Renault’s huge 43.7% stake in Nissan.
The pair joined forces in 1999 and were later joined by Mitsubishi Motors, but the alliance has been contentious, especially in recent years.
A source who spoke on condition of anonymity told a French news agency that Nissan’s independent directors had “given the green light” to the deal, paving the way for a “historic” deal.
Final details are expected to be agreed upon at a meeting in Japan on January 26, with a signing and announcement next week, the AFP source added.
A Nissan spokesman declined to comment on the “speculation,” but Japanese newspaper Yomiuri Shimbun also reported that the deal was close to being finalized.
Renault is expected to cut its stake in Nissan to 15 percent, which is the same as the Japanese firm’s stake in its French partner. Nissan is also likely to invest in Renault Ampere’s new electric vehicle business, though the size of its involvement in the project is unclear.
If a deal is agreed upon, it would be the new chapter in a sometimes rocky alliance that began when Renault bailed Nissan out of bankruptcy in 1999. Relations were destabilized by the 2018 arrest of Nissan boss Carlos Ghosnwho claimed that the allegations against him were intended to prevent him from bringing the Japanese and French automakers closer together.
Mitsubishi Motors joined the alliance in 2016 when Nissan acquired a 34% stake in its Japanese competitor.
Analysts see the rebalancing of the deal as a way to bolster confidence between Nissan and Renault.
There are also opportunities for the firms to collaborate on electric vehicles, given Nissan’s existing technology and Renault’s greater access to the European market.
After the deal, the French automaker is not expected to immediately sell its outstanding 28% of its shares in Nissan, because their current market value is lower than that recorded in Renault’s accounts. Instead, the shares will be held in trust for sale when prices rise.
