Renault sells more shares back to Nissan
Graeme Roberts
Supports group target to return to investment grade rating
Just Auto
After a first sale of Nissan shares on 13 December, 2023, following a 12 December announcement it would do so, Renault Group completed a second transaction on 28 March, 2024 and sold Nissan 99,132,100 Nissan shares, or about 2.5% of the Japanese automaker’s capital.

The latest transaction, Renault said, resulted in “a cash inflow of EUR358m which improves the automotive net cash financial position and allows faster deleveraging of the group.

“It also supports the group’s target to return to an investment grade rating.”

The sale resulted from the exercise by Nissan of its right of first offer to acquire 99,132,100 Nissan shares following a notice from Renault Group expressing its intention to sell 280,690,000 Nissan shares (representing up to 7% of Nissan capital).

Pursuant to the New Alliance Agreement inked last July, Renault Group has the option to sell the remainder of the Nissan shares that have not been bought back by Nissan, representing 181,557,900 Nissan shares, during an 180 day period to Nissan or to third parties.

This latest sale was implemented as part of the share buyback programme announced by Nissan on 27 March and implemented on 28 March. As a result of Nissan’s decision to cancel all the bought back shares, the transaction would be accretive for Nissan’s shareholders. The cancellation would be implemented tomorrow, 3 April.

Accounting impacts included:

On Renault Group consolidated financial statements: a capital loss on disposal of around EUR440m which would impact net income but, booked in ‘other operating income and expenses’, will not affect group operating income.

On Renault SA statutory statements: a capital gain on disposal of around EUR50m.

Renault said, in accordance with the New Alliance Agreement, the group had no obligation to dispose of the 1.19% in excess of the 15% and Nissan would continue to hold a 15% stake in the Renault Group. Voting rights of both Renault Group and Nissan would continue to be capped at 15%.