Renault, Nissan agree on equal cross-shareholdings

Nissan and Renault have made their mutual cross-shareholdings equal at 15%, ironing out a source of friction in their alliance.

The Renault Group will transfer shares equivalent to 28.4 percent of the 43.4 percent stake it owns in Nissan Motor Co. to a French trust, retaining just a 15 percent stake, just as Nissan holds 15 percent of Renault.

The disparity between the holdings created conflicts, especially after Nissan became far more profitable than Renault.

The agreement on the change needs board approvals from both companies.

The companies did not reveal share buyers from the French trust, or the time frame for the sale.

Until then the voting rights would be “neutralized” for most managerial decisions, but the economic rights, such as dividends, will go to Renault.

The companies called the equalization of the crossholdings “an important milestone.”

The agreement calls for Nissan to invest in Ampere, Renault’s electric vehicle and software company. The companies will also work together on marketing, vehicles and technology in Latin America, India and Europe.

The French government is Renault’s top shareholder.