French automaker Renault SA is willing to reduce its stake in Japanese automaker Nissan Motor Co Ltd, citing people familiar with the discussions. According to the report, Nissan is pushing Renault to reduce its stake to 15%. The French automaker owns about 43% of Nissan.
The cut would see Renault match Nissan’s stake in the French company, which is about 15% without voting rights. In June, Nissan revealed details of an alliance pact with top shareholder Renault that prevents it from unilaterally increasing its stake above 44.4%. The talks between the two companies are about whether Nissan will join a new unit Renault is setting up to house its electric vehicle (EV) assets in exchange for its French ally divesting Nissan’s stake, according to a Wall Street Journal report on Friday .
Renault plans to split its electric vehicle (EV) and internal combustion engine businesses as it seeks to catch up with rivals such as Tesla and Volkswagen in the race to drive cleaner. Executives from both companies discussed Renault’s plan to reshape their alliance during meetings in France and Japan.
Talks between the companies are intensifying, adding that Renault CEO Luca de Meo is scheduled to attend the Formula 1 race in Suzuka on Sunday, giving him an opportunity to speak with Nissan CEO Makoto Uchida. However, the report said the weekend talks were unlikely to produce concrete results. Renault did not immediately respond. A Nissan spokesman did not immediately respond to a request for comment outside regular business hours.
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