Renault Limited To 44.4% Stake In Nissan

Nissan Motor Company Ltd. disclosed for the first time on Thursday the specifics of its two-decade-old alliance agreement with top shareholder Renault SA, disclosing that the French manufacturer cannot unilaterally grow its holding beyond 44.4 percent, Satoshi Sugiyama wrote for Reuters.

Photo Insert: Renault owns approximately 43 percent of the company. Nissan owns 15% of Renault but has no voting rights.

Nissan stated in its annual securities report that Renault cannot increase its interest without Nissan's authorization, save in circumstances when another business bids for the Japanese automaker.

Renault owns approximately 43 percent of the company. Nissan owns 15% of Renault but has no voting rights.

Nissan has revealed specifics of the so-called Restated Alliance Master Agreement for the first time, although Renault had previously divulged sections. Their relationship has caused controversy in Japan, where it is widely perceived as unequal.

According to the filing, Nissan is permitted to buy an additional stake in Renault if the French manufacturer puts forward a shareholder proposal that Nissan's board of directors does not support.

According to the filing, the Japanese manufacturer may expand its ownership if Renault does not accept its demand for a Nissan board member pick. The announcement on Thursday came after a shareholder resolution to make the alliance agreement public was defeated at Nissan's annual general meeting this week.

Nissan stated that if it did not violate confidentiality agreements, it would announce the agreement by Thursday. Nissan shares fell 2.8 percent to 533.5 yen, trailing the Nikkei 225 index, which fell 1.3 percent.

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