Nissan acquires ownership of 195,473,600 shares from Renault Group, worth €494 million
Nissan Announces Share Buyback and New Alliance Agreement with Renault Group
In a significant move, Nissan has announced a share buyback program and a new alliance agreement with Renault Group. The share buyback was executed on September 27, 2024, following its announcement on September 26, 2024.
Nissan sold a total of 195,473,600 shares, a decision that will be accretive for its shareholders. Despite the sale, Nissan will continue to hold a 15% stake in the Renault Group. This transaction, however, will result in a capital loss for Renault Group. On their statutory statements, a capital loss of around €120 million will occur, while on their consolidated financial statements, the loss will amount to approximately €1,100 million.
The new alliance agreement does not involve any further share transactions between Renault Group and Nissan. It also does not mandate any changes to the ownership structure between the two companies. The agreement preserves the current ownership and voting rights balance, with both parties maintaining a voting cap of 15%.
The voting rights of Renault Group and Nissan will continue to be capped at 15%, ensuring a balanced power dynamic between the two companies. The cancellation of the bought back shares will be implemented on October 3, 2024.
It's important to note that the new alliance agreement does not require Renault Group to reduce its stake below 15%. Furthermore, Renault Group has no obligation to dispose of the 2.05% of Nissan shares in excess of the 15%.
Interestingly, there is no public information available about who sold the 195 million Nissan shares between September 27, 2024, and October 3, 2024. The agreement also does not entail any changes to the voting rights structure between Renault Group and Nissan.
The capital loss will impact the net income but not the operating income of Renault Group. This move by Nissan is part of a broader strategy to strengthen its alliance with Renault Group and enhance its financial position.
The New Alliance Agreement does not affect Nissan's 15% ownership of Renault Group. Under the agreement, both Renault Group and Nissan maintain a voting cap of 15%, ensuring a balanced relationship between the two companies moving forward.
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