Renault limited to 44.4% stake in Nissan under agreement, filing shows
Reuters
Published Jun 29, 2022 11:18PM ET
Updated Jun 30, 2022 12:41AM ET
TOKYO (Reuters) -Nissan Motor Co Ltd on Thursday gave some details of its two-decade-old alliance agreement with top shareholder Renault SA (OTC:RNLSY) for the first time, revealing the French automaker cannot unilaterally increase its stake beyond 44.4%.
In an annual securities report, Nissan (OTC:NSANY) said Renault (EPA:RENA) cannot raise its stake without Nissan's permission except in cases such as if another entity bids for the Japanese automaker.
Renault's stake is around 43%. Nissan owns 15% of Renault but without voting rights.
This is the first time Nissan has revealed details of the so-called Restated Alliance Master Agreement, though Renault has previously disclosed elements. Their relationship has been a source of tension in Japan where it is widely seen as unequal.
The filing showed Nissan is allowed to acquire an additional stake in Renault if the French automaker makes a shareholder proposal that Nissan's board does not support.
The Japanese automaker can also increase its stake if Renault does not support its proposal for a Nissan board member selection, the filing showed.
Thursday's disclosure came after a shareholder proposal to make the alliance agreement public was voted down at Nissan's annual general meeting this week.
Nissan said it would disclose the agreement by Thursday to the extent it did not violate confidentiality obligations.
Shares of Nissan were down 2.8% at 533.5 yen, underperforming the Nikkei 225 average, which was down 1.3%.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.