Nissan, Renault to Agree on Equal Capital Ties

Tokyo, Jan. 30 (Jiji Press)--French automaker Renault SA will agree to lower its equity stake in Nissan Motor Co. <7201> to 15 pct to match the Japanese automaker's ownership in Renault, informed sources said Monday.

The two companies are making final adjustments so that they will be able to release a statement on the agreement later on the day, according to the sources. Renault currently owns 43 pct of Nissan.

Nissan started receiving aid from Renault in 1999 amid financial difficulties after the collapse of Japan's bubble economy. The planned equalization of stakes will bring the two automakers' partnership to a new phase.

Nissan is in talks with Renault to own up to around a 15 pct stake in a new electric vehicle firm to be spun off from the French automaker, the sources said. Details on the investment amount and ratio will be decided later.

END

[Copyright The Jiji Press, Ltd.]