Renault Group intends to acquire Nissan’s 51 percent stake in Renault Nissan Automotive India. This follows Nissan’s stake reduction from 70 percent to 51 percent in 2023, part of a $600 million investment for new models. Both companies have also agreed to lower their cross-shareholdings from 15 percent to 10 percent as part of a revamped partnership.
On March 31, Renault Group announced its intention to acquire the remaining 51 percent stake in Renault Nissan Automotive India Private Ltd., currently owned by Nissan. This acquisition will allow Renault to consolidate its control over the Chennai-based subsidiary, which has been operational since 2010. Initially, Renault held a 30 percent stake, while Nissan possessed 70 percent. However, Nissan’s stake was reduced to 51 percent in 2023 as part of a $600 million investment for manufacturing six car models in India.
Furthermore, Renault and Nissan revealed adjustments to their long-standing partnership, specifically reducing their cross-shareholdings from 15 percent to 10 percent. This move aims to streamline their equity structure and enhance operational efficiency within their collaborative efforts.
This announcement is classified as breaking news, and further updates will follow. Readers can expect ongoing coverage of this development in the stock market and automotive sectors.
In conclusion, Renault’s acquisition of Nissan’s stake in Renault Nissan Automotive India marks a significant shift in their partnership and corporate structure. The reduction of cross-shareholdings highlights a strategic move towards greater operational autonomy for each automaker. This ongoing evolution reflects the dynamic landscape of the automotive industry, where partnerships are continually adapting to meet market demands.
Original Source: www.livemint.com
