Nissan purchased approximately 195,473,600 Renault Group shares, costing them a total of 494 million euros.

The Renault-Nissan Alliance has announced that the current ownership and voting rights structure between the two companies will remain unchanged, following the execution of the New Alliance Agreement on September 27, 2024.

Under the terms of the agreement, both Renault Group and Nissan will maintain a capped voting rights stake of 15% in each other's companies. This means that Renault Group's voting rights in Nissan will remain at 15%, and Nissan will continue to hold a 15% stake in Renault Group.

As part of the agreement, Nissan has decided to cancel all repurchased shares, amounting to 195,473,600 shares. The cancellation of these shares will have a dilutive effect on Nissan's shareholders. The shares, which were initially held by institutional investors and major shareholders, will be cancelled on October 3, 2024.

The cancellation of these shares will result in a loss on sale of approximately €120 million on Renault S.A.'s individual accounts and a loss on sale of approximately €1.1 billion on Renault Group's consolidated accounts. However, the fiscal impact of this sale of Nissan shares is expected to be non-significant.

The New Alliance Agreement also allows Renault Group to retain a stake above the 15% threshold in Nissan, but it is not required to sell the 2.05% of Nissan shares that exceeds 15%. Similarly, the agreement does not require Nissan to sell any of its shares in Renault Group.

The New Alliance Agreement further maintains the ownership and voting rights structure between Renault Group and Nissan, and does not affect the ownership of a 15% stake in Renault Group by Nissan.

Despite the loss on sale, the impact on Renault Group's net income is expected to be minimal, as the loss will not affect its operating result. The agreement is expected to strengthen the long-standing partnership between Renault Group and Nissan, and to provide a solid foundation for future collaboration and growth.