Renault to Acquire Nissan’s 51% Stake in Indian Manufacturing Arm

Renault Group will acquire Nissan’s 51% shareholding in Renault Nissan Automotive India, enhancing its control of the Chennai-based subsidiary. Additionally, both companies will reduce cross-shareholdings from 15% to 10%, indicating a strategic reevaluation of their partnership.

Renault Group has announced its intention to acquire Nissan’s remaining 51% stake in Renault Nissan Automotive India Private Ltd. This subsidiary, based in Chennai, has been operational since 2010. Initially, Renault held a 30% stake, while Nissan controlled 70%; however, Nissan’s stake reduced to 51% in 2023 following a $600 million investment to produce six car models in India.

In addition to the stake acquisition, Renault and Nissan revealed they are modifying their long-term partnership structure. Going forward, the companies will reduce their cross-shareholdings to 10% from the previous 15%. This change reflects a strategic shift within the partnership, allowing both companies to focus more on independent operational strengths in their local markets.

Renault’s acquisition of Nissan’s 51% stake in the Indian subsidiary marks a significant shift in their joint venture, enhancing Renault’s control in India. Furthermore, the reduction of cross-shareholdings indicates a strategic reorientation of their partnership, paving the way for more independent operations in the automotive landscape.

Original Source: www.livemint.com