Renault has plans to sell some of its stake in Nissan to fund its EV transition.
French automaker Renault is considering selling some of its Nissan stakes to push with plans to separate its EV division from its combustion engine operations. Nissan has dropped 4% in early trading in the Tokyo market after Bloomberg reported that Renault, their top shareholder, is considering 43% of its stake. According to Renault, the split will help the automaker focus on advancing its EV business to catch up with dominating EV makers in the market, such as Tesla and Volkswagen.
Renault said earlier that all options are available on the table with its plans to separate its EV division, even including a potential public listing in the second half of 2023. However, any plans they have will include Nissan, and the Japanese automaker was “in the loop” as Renault considered its options.
It is also reported that Nissan might be willing to re-acquire some of Renault’s shares. Renault might sell a portion of its 43% share in Nissan to other acquirers.
If Renault opts to reduce its stake in Nissan, the French Automaker could raise at least 4.65 billion euros.
In an earlier report, both Renault and Nissan had planned to work together to make Electric Vehicles. They said that they have invested in a $26 billion plan for the next five years.