Renault said to offer Nissan concessions to reach deal

Renault is offering Nissan several concessions as the partners seek to strike deals to restart the 20-year-old alliance, according to people familiar with the situation.

Nissan’s outside directors will meet early next week to consider Renault’s proposals, said the people, who asked not to be identified because the talks are private.

These include reassurances that help allay Nissan’s concerns about shared intellectual property, one of the sticking points in the negotiations, the people said.

Renault officials have acknowledged that Nissan may invest less in the EV business of a French automaker called Ampere than had been expected, according to people familiar with the matter.

Renault plans to go public later this year, subject to market conditions, targeting a valuation of around €10 billion for the unit.

Nissan does not agree with this rating level and has yet to make a decision on Ampere, said a person familiar with the matter. Originally scheduled, he may end up buying a 15% stake, they said.

A Renault spokeswoman declined to comment. A Japan-based Nissan media representative did not immediately respond to a request for comment after hours.

complex split

Renault is in the midst of a complex division of its business into five different divisions, and is negotiating with Nissan on how to realign its partnership with the lopsided capital ties that have caused friction over the years.

Nissan CEO Makoto Uchida wants to move the deal forward quickly, but the company’s outside directors are concerned about the impact of the Renault restructuring on the Japanese company, which has delayed the deal. Several officials said.

There are also concerns about Renault’s former internal combustion engine business partner Zhejiang Geely Holdings of China gaining access to the joint venture technology.

pressure of the past

French President Emmanuel Macron met with Japanese Prime Minister Fumio Kishida and reaffirmed that the French government supports Renault’s rebalancing plans and will not seek a Renault-Nissan merger. Talks with alliance partner Mitsubishi Motors have gained new impetus. .

Past pressure on a merger from the French government, Renault’s strongest investor with a 15% stake, is one reason the relationship between the two companies has been difficult over the years.

The realignment means Renault will gradually sell its 28% stake in Nissan, ultimately resulting in each holding an equal 15% stake in the other company.

As part of the proposal currently under discussion, Nissan will not allow e-Power hybrid technology to be shared within Hoses, the entity Renault is creating for its legacy internal combustion engine assets, the people said. Ma enters into an equal partnership with Geely.

Renault Chairman Jean-Dominique Senard and CEO Luca de Meo will attend in person at the next Alliance steering committee meeting in Japan at the end of the month, a person familiar with the matter said. .

No decision has yet been made on when a non-binding agreement could be signed, and plans for various meetings could change, the people said.

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