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Renault Group Announces Sale Of Up To 195,473,600 Nissan Shares In Strategic Move
Renault Group has announced a third sale of Nissan shares, following previous transactions on December 13, 2023, and March 28, 2024. This latest sale involves up to 195,473,600 shares, equating to about 5% of Nissan's capital. The transaction aligns with Nissan's share buyback program declared on September 26, 2024, and set for execution on September 27, 2024. Nissan plans to cancel the acquired shares, benefiting its shareholders.
The shares being sold are part of the 22.73% of Nissan's capital held by a French trust. Originally, Renault Group transferred 28.4% into this trust on November 8, 2023, under the New Alliance Agreement with Nissan. If all shares are sold at ¥408.5 each (the adjusted closing price on September 26, 2024), Renault Group could receive up to €494 million. This would enhance Renault's Automotive net cash position.
Nissan's decision to cancel the repurchased shares is expected to be advantageous for its shareholders. The buyback program was initially announced on September 26, 2024. The ex-dividend date for Nissan's fiscal year 2024 interim dividend is September 27, which affects the share price calculation due to Tokyo Stock Exchange rules.
Selling these shares will result in a capital loss for Renault Group. On consolidated financial statements, this loss could reach €1,100 million but won't affect operating income or dividends paid in 2025 based on 2024 results. Renault S.A.'s statutory statements might show a maximum capital loss of €120 million. Tax implications are expected to be minimal.
This transaction aids Renault Group in reducing debt more swiftly and supports its goal of regaining an investment-grade rating. The group remains committed to innovation and sustainability through its alliance with Nissan and Mitsubishi Motors and its focus on electrification.
Renault Group operates across more than 130 countries and sold over 2.235 million vehicles in 2023. With nearly 106,000 employees worldwide, it aims for carbon neutrality in Europe by 2040 while continuing its transformation journey focused on new technologies and services.
Renault Group includes four brands: Renault, Dacia, Alpine, and Mobilize. These brands offer innovative mobility solutions tailored to meet environmental challenges and customer needs globally.
This strategic move reflects Renault's ongoing efforts to adapt and thrive in a rapidly changing automotive landscape while maintaining strong alliances and pursuing ambitious goals for future growth and sustainability.
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