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Renault, Nissan make cross-holdings equal

Up to now, the Renault group has held a 43.4 per cent stake in Nissan Motor Co
No disparity
No disparity
File picture

AP   |   Tokyo   |   Published 31.01.23, 01:43 AM

Nissan and Renault have changed their mutual cross-shareholdings to an equal 15 per cent, ironing out a source of conflict in the Japan-French auto alliance.

Up to now, the Renault group has held a 43.4 per cent stake in Nissan Motor Co.


It will transfer shares equivalent to a 28.4 per cent stake to a French trust, so it will hold a 15 per cent stake in Nissan, just as Nissan holds 15 per cent of the French auto maker, according to the companies.

The disparity between the holdings was a cause of friction, especially after Nissan became far more profitable than Renault.

The cross-national alliance, creator of the Leaf electric car and Infiniti luxury models, remains one of the world’s top auto groups. But it has had its highs and lows since it began in 1999, when Renault sent one of its executives, Carlos Ghosn, to then-struggling Nissan to lead a turnaround.

Ghosn first served as Nissan’s chief executive and later its chairman before he was arrested in late 2018 on various financial misconduct charges.

The Nissan-Renault alliance, which also includes smaller Japanese auto maker Mitsubishi Motor Corp, has been eager to put the Ghosn scandal behind it.

Allegations against Ghosn include underreporting income, using investment funds for personal gain and illicit use of company expenses, including overseas homes and a yacht.

Ghosn said he is innocent of all charges. He jumped bail in late 2019 and is now in Lebanon, which has no extradition treaty with Japan.

The equalisation has been speculated about for some time.

The agreement on the change is still being finalised and needs board approvals from both companies.

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