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Renault SA is open to reducing its stake in Nissan Motor Co. as the partners bargain over the French automaker’s plan to split its electric-car and combustion-engine vehicle 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. Negotiations are intensifying, with the French carmaker planning to announce details in early November. Renault Chief Executive Officer Luca de Meo is due to attend the Formula 1 race in Suzuka, central Japan, on Sunday, giving him an opportunity to speak with Nissan CEO Makoto Uchida.
The parties’ lopsided capital ties have long been a contentious issue for Nissan. The Japanese company is pressing Renault to reduce its stake to 15% from 43% to draw level with Nissan’s share in Renault, the people said, declining to be named as details are private. Nissan may consider raising funds to buy back shares from the partner that rescued it in the late 1990s, Reuters reported separately, citing a person it didn’t identify.
While the weekend talks are unlikely to yield concrete results, any movement will hinge on concessions from Nissan and probably include agreed upon price levels or specific project milestones that will trigger share sales, the people who spoke to Bloomberg News said.
