Renault and Nissan agree to restructure alliance.

(Reuters)

[Financial Channel/Comprehensive Report] French automaker Renault (Renault) and its Japanese partner Nissan (Nissan) have finally reached a consensus after months of alliance restructuring negotiations. Nissan and Renault will now hold 15% of each other. After the news, Nissan's stock price rose nearly 2% in early trading on Tuesday (31st), while Renault closed down 4% on Monday (30th).

Under the deal announced by the two sides on Monday, Nissan and Renault now each have a 15 percent cross-shareholding, with Nissan directly exercising its voting rights in Renault.

Before that, Renault held about 43% of Nissan's shares with voting rights, while Nissan held 15% of Renault's shares, but did not have voting rights.

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Renault will transfer its approximately 28% stake in Nissan to a French trust fund. Renault cannot use these shares to exercise voting rights in most of Nissan's operating decisions, but it can enjoy benefits such as dividends and share sales. .

Renault will instruct the French trust to sell the Nissan shares if commercial conditions are met.

As part of the agreement, Nissan will invest in Renault's electric vehicle unit Ampere.

The two parties will also promote "high value creation business plans" in Latin America, India and European markets.

However, the transaction still needs to be approved by the board of directors.

Renault fell 4.12% on Monday to close at 36.63 euros.

Nissan rose nearly 2 percent in early trading on Tuesday, as high as 468 yen.

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