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Renault And Nissan Curb French Governmental Interference
Renault and Nissan have both taken action in a bid to limit the influnce of the French Government on both companies. The new agreement also limits the amount of influence both companies have on each other.
The French government had recently increased its stake in Renault in April to 19.73%, up from 15% and had also passed laws that doubled the power of long-term investors in the company. The French Government would have had over 30% of voting rights in the Renault board.
However, according to a new deal signed with the French government, the voting rights of the politicians in Paris has beeen downgraded to just 17.9%, except if there is a chance of a takeover, in which case it will be increased to 20%.
Renault and the French government have also agreed not to interfere in the governance of Nissan. In return, Japanese carmaker Nissan will not increase its stake in Renault or convert them into voting rights.
Renault also reasserted its confidence in Carlos Ghosn, the Chairman and CEO of both Renault and Nissan who was the main opponent of government interference.
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