Nissan Motor pushes partner Renault to sell down stake, may raise funds

Asks French firm to cut stake to 15%

Nissan Motor is pressing French partner Renault to cut its stake in the Japanese automaker as much as possible, ideally to 15 per cent, and may consider raising funds to buy back the shares, a source familiar with the matter said. In lieu, Renault is open to reducing its stake in Nissan Motor as the partners bargain over the French carmaker’s plan to split its electric-car and combustion-engine assets, according to people familiar with the discussions. Executives have discussed Renault’s carve-out plan and reshaping the pair’s two decade-old alliance since february during meetings in France and Japan

The demands were made in exchange for Nissan agreeing to invest in Renault's new unit being set up to house its electric vehicle (EV) assets, said the source, who sought anonymity.

Renault owns about 43 per cent of Nissan, which wants its French ally to wind down the stake to 15 per cent, drawing level with Nissan's share in the alliance partner, the source said.

The stake sale would not affect their business alliance and Nissan may need to raise funds to buy the shares back from Renault, the source added.

A Nissan spokesperson declined to comment. Renault did not immediately reply to Reuters’ requests for comment.

The stake selldown talks were first reported by the Wall Street Journal and news agency Bloomberg said Renault was open to reducing its stake in Nissan, citing people familiar with the talks.

Renault is pushing ahead with plans to split its EV and combustion engine businesses in a bid to catch up with rivals such as Tesla and Volkswagen in the race to cleaner driving. Renault is seeking for Nissan to participate in its EV business while retaining a 51 per cent stake

It expects to unveil a detailed blueprint for the new EV entity at a capital markets day this autumn.

As the negotiations intensify, Renault's Chief Executive Luca de Meo is set to speak with his Nissan counterpart, Makoto Uchida,

This weekend’s talks are unlikely to yield concrete results, but negotiations could bring a deal before November 8, when de Meo plans to present an update of his strategy, whose codenames are “Horse” and “Ampere.”

Nissan and Mitsubishi have not yet said whether they will take part in Renault's future EV unit.  Mitsubishi was also considering taking a single-digit per cent stake in Renault's EV unit.