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Renault Initiates 5% Stake Sale in Nissan, Unveils Strategic Alliance Restructuring

Japan
n 7201.TSE Blue Chip 150
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Renault has embarked on a pivotal phase of its strategic alliance reshaping with the initiation of a 5% stake sale in Nissan, the initial move in a broader plan to reduce its holding in the Japanese automaker from approximately 43% to 15%. The sale, expected to incur a loss of up to 1.5 billion euros on Renault’s initial investment, signifies a significant shift in the dynamics of the long-standing partnership between the French and Japanese automotive giants.

The sale will be executed through a share buyback on Wednesday, with an estimated value of 765 million euros. This move is part of Renault’s commitment to streamline the alliance, reflecting the finalized terms agreed upon with Nissan in July. Renault has strategically placed 28.4% in a trust, intending to gradually divest from this holding in subsequent share sales.

While the capital loss will impact Renault’s net result for the year, the operating income remains unaffected, according to Renault’s announcement. Nissan, in a separate statement, confirmed its intent to acquire the shares through a right of first offer and highlighted its commitment to enhancing shareholder returns and capital efficiency. The acquisition cost for Nissan is estimated at 119.95 billion yen, funded by its net cash position. Renault shares experienced a brief rise at the market open but later dipped by 0.2% in early Paris trade.

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