The boards of Renault and Nissan announced a landmark deal to rebuild their troubled 20-year partnership just hours before an official event to unveil the details of the plan, according to people familiar with the situation. will be approved.
Renault’s board met on Sunday, followed by Nissan’s board meeting on Monday, Feb. 6, said the people, who asked not to be identified to discuss undisclosed information. The two boards are expected to agree to the proposal, according to people familiar with the matter.
Renault and Nissan this week outlined a basic agreement on a deal to realign their capital ties and work together on future projects, with the goal of restructuring the partnership, which includes junior partner Mitsubishi Motors.
The vote will take place just before a media conference where executives from the three companies will be holding in London on February 6th to share more about their plans, with final details on timing and location determined. There are, said the official.
A Nissan spokeswoman said the company had no further comment after this week’s announcement. A Renault spokeswoman declined to comment.
The vote follows months of tense talks aimed at reconciling a long-troubled relationship. 2018 Arrest of Former Alliance Leader Carlos Ghosn.
“The delay in talks just reflects the level of misunderstanding between the two groups and perhaps their respective ‘fatigue’,” Stifel analyst Pierre-Yves Kaemner said.
“The only risk today is that Renault management is now embroiled in endless ‘low-level’ or ‘last minute’ demands from (former) Japanese ‘partners’. ”
The deal would see Renault reduce its stake in Nissan from 43% to 15%, rebalancing a one-sided capital relationship that has fueled long-standing resentment against the Japanese automaker.
Nissan will also invest in Ampere, the electric vehicle and software business of French automaker Renault.
The companies are betting that the revised partnership will help successfully address key challenges reshaping the automotive industry, such as the move to costly electrification and the rise of automation.
This includes Renault working with new partners such as China’s Zhejiang Geely Holding Group and Qualcomm.
The Feb. 6 press conference is unlikely to provide details on how much Nissan plans to invest in Ampere or how much it is willing to invest in the business, according to people familiar with the matter.
Renault is aiming for Ampere’s IPO in the second half of this year, depending on market conditions, people familiar with the matter said. Bloomberg reports that the company is targeting a valuation of around €10 billion.
Negotiations were in danger of falling apart late last year due to general technology Renault wants to share with other parties and intellectual property concerns over Ampere’s valuation.
Nissan’s outside directors backed Renault’s proposal after an extended meeting on Jan. 16. They are expected to review the deal in detail again on Tuesday and vote in favor of the plan, the people said.
As part of the solution to the intellectual property dispute, Nissan will be paid royalties for sharing the technology, the people said.
Renault, Nissan and Mitsubishi Motors plan to work together to move forward on specific projects involving vehicles and technology in India, South America and Europe, a statement earlier this week confirmed.