Renault Group, Nissan Announce Completion Of Agreements Framing Alliance's New Chapter

Following the announcements made on February 6, 2023, and July 26, 2023, and after obtaining all required regulatory approvals, the New Alliance Agreement between Renault Group and Nissan has come into force.

Renault Group and Nissan now have a cross-shareholding of 15% with lock-up and standstill obligations. Each partner can exercise the 15% voting rights attached to its shareholding. I Photo: Nissan

This agreement replaces the former agreements governing the Alliance, including the Restated Alliance Master Agreement, the Alliance Equity Participation Agreement, and the Memorandum of Understanding of March 12, 2019.

As a result, Renault Group and Nissan now have a cross-shareholding of 15% with lock-up and standstill obligations. Each partner can exercise the 15% voting rights attached to its shareholding.

Renault has transferred 28.4% of Nissan shares into a French trust, with voting rights exercised neutrally, subject to limited exceptions. Renault Group retains economic rights (dividends and proceeds of share sales) from the entrusted Nissan shares until they are sold.

Renault Group can instruct the trustee to sell the entrusted Nissan shares but is not obligated to do so within a specific period.

No impairment will be recorded in Renault Group’s financial statements due to the transfer of Nissan shares into the trust.

Jean-Dominique Senard, Chairman of the Alliance, stated, “This is a very important step for Renault Group, Nissan and Mitsubishi Motors, and lays the foundations for a new fair, long-standing and effective partnership that will create value for each Alliance member and for all our stakeholders.”

Makoto Uchida, President and CEO of Nissan Motor Co. Ltd., expressed confidence in the future prospects of the rebalanced partnership with Renault Group.

Luca de Meo, CEO of Renault Group, highlighted the pragmatic and business-oriented approach in entering this new era of the Alliance. He emphasized the strengthening of joint projects in Europe, Latin America, and India, generating mutual benefits in the field of innovation.

De Meo also welcomed Nissan and Mitsubishi Motors as strong partners in Ampere, Renault Group's EV and software business. Renault Group will gain additional flexibility in its capital allocation policy with the potential monetization of Nissan shares.

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