According to sources familiar with the situation, Renault SA is considering selling a portion of its Nissan Motor Co. investment, a move that could provide billions of euros for its electric car transition and soothe long-standing tensions with its alliance partner.
According to the sources, Nissan itself may be prepared to acquire part of Renault’s 1.83 billion shares in the Japanese manufacturer.
The talks aren’t public, so they didn’t want to be identified. According to the sources, Renault may look for other buyers for a portion of its 43 percent interest in Nissan.
Renault and Nissan representatives declined to comment. In Paris trade, Renault shares were up 8.3 percent as of 11:35 a.m. Friday.
Renault would be treading a tight line if it pared a share worth 983.5 billion yen (7.1 billion euros), attempting to rebalance a 23-year-old alliance without dissolving it.
An unbalanced cross-shareholding arrangement, in which Nissan owns just 15% of Renault and has no voting rights, has been a source of contention among Nissan officials for years.
A sale might aid in the funding of important structural changes. Renault In February, Chief Executive Officer Luca de Meo began sketching up the plan.
The corporation is considering splitting off its electric vehicle division and listing it separately. The company’s legacy business could then team up with a partner.
According to the sources, one option would be China’s Zhejiang Geely Holding Group Co., which owns Volvo Car AB.
Renault and Geely signed a cooperative manufacturing agreement for a South Korean facility earlier this year, and the two have hinted that they may work together in China as well.
To read our blog on “Nissan and Renault Scrap Plans For Full Merger: Report,” click here.