Renault Group and Nissan Motor have entered into the definitive agreements contemplated by the binding framework agreement executed and announced on February 6, 2023.
As part of this cooperation, Nissan has confirmed its intention to become a strategic investor in Ampere, Renault Group’s new EV and software entity in Europe.
Accordingly, Nissan has committed to invest up to €600 million in Ampere, consistent with being a strategic investor in the project and securing a Board seat. This investment opportunity aligns with the Japanese OEM's electrification strategy, creating multiple potential benefits and synergies that complement its own goals and initiatives in Europe and other potential markets.
The agreements focus on extending the alliance collaboration in three areas, namely, High-value-creation operational projects in India, Latin America and Europe; Enhanced strategic agility with new initiatives that partners can join and Rebalanced Renault Group-Nissan cross-shareholdings and reinforced alliance governance.
In the first area, the partners are considering new key projects in Latin America, India and Europe that aim to deliver win-win, large-scale, actionable benefits. Among these, Renault Group and Nissan have already announced their renewed commitment to Indian operations through new investments and vehicles.
Meanwhile, in the second area of enhanced cooperation, the partners agreed to explore their existing strategies in electrification and low-emission technologies by investing and collaborating in respective member company projects that could provide incremental value to each individual business.
Jean-Dominique Senard, Chairman, Renault- Nissan alliance, noted that the agreements that have been signed allow the alliance to step into the next chapter. They strengthen the long-standing partnership and will maximise value creation for each alliance member. “This also lays the foundations for a new balanced, fair, and effective governance,” he added.
Makoto Uchida, President and CEO, Nissan Motor, stated that with the finalisation of the definitive agreements, the company has entered the next phase of collaboration with Renault and Mitsubishi Motors in mutually beneficial areas of innovation.
This will create additional value through initiatives aligned with Nissan's Ambition 2030 and electrification strategy. The investment opportunity in Ampere complements and strengthens Nissan’s ongoing electric push in Europe and will deliver numerous synergies, including cost efficiencies, regulatory compliance, and a broader range of EV products and powertrains.
Luca de Meo, CEO, Renault Group, said that these agreements provide the company with a solid base to reactivate business operations worldwide in key markets, potentially generating hundreds of millions in value for Renault, Nissan, Mitsubishi and stakeholders.
They give Renault the strategic agility that is needed more than ever in today’s rapidly evolving environment. “We are all engaged with the right mindset and welcome Nissan as a strong partner in our upcoming EV and Software pure player Ampere. It confirms the attractiveness of the project to be front runner in Europe, allowing Renault and its Alliance partners to position themselves ahead of the starting grid for the EV and software race in Europe,” he noted.
As announced on February 6, 2023, Renault Group and Nissan will retain cross-shareholdings of 15% with lock-up and standstill obligations. Renault will transfer 28.4% of its Nissan shares into a French trust, where the entrusted shares will be voted neutrally, subject to limited exceptions.
Renault Group would continue to fully benefit from the economic rights (dividends and proceeds of share sales) from the entrusted shares until such shares are sold. The transfer to the trust would trigger no impairment in Renault Group's financial statements. As a result of the transfer of the 28.4% of Nissan shares to the trust, the Japanese OEM could exercise its voting rights attached to its shareholding in Renault Group.
The voting rights of Renault Group and Nissan would be capped at 15% of the exercisable voting rights, with both companies able to freely exercise their voting rights within such limit.
Renault Group would instruct the trustee to sell the entrusted Nissan shares if commercially reasonable for Renault Group, but it is not obligated to sell the shares within a specific pre-determined period. Renault Group would have full flexibility to sell the Nissan shares held in the trust within a coordinated and orderly process with Nissan, in which the company would benefit from a right of first offer to its or the benefit of a designated third party.
Also Read