Renault limited to 44.4% stake in Nissan under agreement, filing shows

Renault limited to 44.4% stake in Nissan under agreement, filing shows

TOKYO (Reuters) -Nissan Motor Co Ltd on Thursday gave some details of its two-decade-old alliance agreement with top shareholder Renault SA (OTC:RNLSY) for the first time, revealing the French automaker cannot unilaterally increase its stake beyond 44.4%.


In an annual securities report, Nissan (OTC:NSANY) said Renault (EPA:RENA) cannot raise its stake without Nissan's permission except in cases such as if another entity bids for the Japanese automaker.

Renault's stake is around 43%. Nissan owns 15% of Renault but without voting rights.

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This is the first time Nissan has revealed details of the so-called Restated Alliance Master Agreement, though Renault has previously disclosed elements.

Their relationship has been a source of tension in Japan where it is widely seen as unequal.

The filing showed Nissan is allowed to acquire an additional stake in Renault if the French automaker makes a shareholder proposal that Nissan's board does not support.

The Japanese automaker can also increase its stake if Renault does not support its proposal for a Nissan board member selection, the filing showed.

Thursday's disclosure came after a shareholder proposal to make the alliance agreement public was voted down at Nissan's annual general meeting this week.

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Nissan said it would disclose the agreement by Thursday to the extent it did not violate confidentiality obligations.

Shares of Nissan were down 2.8% at 533.5 yen, underperforming the Nikkei 225 average, which was down 1.3%. -



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