Nissan, Renault Formally Agree on Equal Cross-Shareholdings

Tokyo, Feb. 6 (Jiji Press)--Nissan Motor Co. <7201> and its French partner, Renault SA, announced on Monday that they have reached a formal agreement on a renewed alliance, under which they will hold an equity stake of 15 pct in each other.

Renault's stake in Nissan will be reduced from 43 pct to 15 pct, the same as the major Japanese automaker's stake in the French auto giant. They will also establish a partnership in the field of electric vehicles.

With the automotive industry going through an era of once-in-a-century change, the Japanese-French alliance has reached a major turning point 24 years after its establishment. The alliance also includes Japan's Mitsubishi Motors Corp. <7211>.

Nissan and Renault are planning to reach a definitive agreement by the end of March, aiming to realize the equal cross-shareholdings by the end of 2023.

On Monday, Nissan President Makoto Uchida, Renault Chairman Jean-Dominique Senard and CEO Luca de Meo, and Mitsubishi Motors President Takao Kato held a joint press conference in London.

[Copyright The Jiji Press, Ltd.]