Nissan, Renault Agree on Equal Cross-Shareholding
Tokyo, Jan. 30 (Jiji Press)--Nissan Motor Co. <7201> and its French partner, Renault SA, on Monday released a statement on their new partnership for owning an equity stake of 15 pct in each other.
Nissan said that it has "reached an important milestone" in its talks with the Renault group on defining new foundations for their partnership. The deal will be formalized after gaining approval from the two firms' boards of directors.
Under the deal, the Renault group, which currently owns 43.4 pct of Nissan, will transfer a 28.4 pct stake in the major Japanese automaker to a French trust to lower the ownership, the statement said.
While the voting rights carried by the shares to be transferred will be "neutralized" for most of the decisions, the Renault side will maintain the right to receive dividends from the shares and sale proceeds until they are sold, according to the statement. A deadline for the possible sale of the shares will not be set.
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 take the two automakers' alliance to a new phase.
[Copyright The Jiji Press, Ltd.]