Renault SA is closing in on an agreement for Nissan Motor Co. to invest in the French carmaker’s electric-vehicle arm, according to people familiar with the situation, a key step toward concluding a rebalancing of their troubled alliance.
(Bloomberg) — Renault SA is closing in on an agreement for Nissan Motor Co. to invest in the French carmaker’s electric-vehicle arm, according to people familiar with the situation, a key step toward concluding a rebalancing of their troubled alliance.
Renault Chairman Jean-Dominique Senard will attend a so-called alliance operating board meeting Thursday in Yokohama, said the people, who asked not to be identified discussing private matters. The talks are accelerating because changes in Nissan’s top management removed an obstacle between the partners, they said.
While the investment into Renault’s Ampere venture isn’t formally on the agenda, the meeting will offer a chance to firm up plans that would see Nissan buy as much as 15% of the French EV arm, the people said.
A spokesperson for Nissan said talks to finalize the agreement are progressing. A representative for Renault declined to comment.
An internal power struggle at Nissan, which led to the departure of Chief Operating Officer Ashwani Gupta, held back negotiations between the alliance partners after a framework agreement was outlined in London in February, the people said. The in-principle deal would allow to restructure cross-capital ties and cooperation on future projects with a goal of resetting a three-way alliance that also includes junior partner Mitsubishi Motors Corp.
Read more: Nissan Announces New Executive Committee Members After COO Exit
Renault Chief Executive Officer Luca de Meo and Nissan CEO Makoto Uchida have been working closely to bring the deal to the finish line. A series of common projects between the two companies already have been reactivated and are proceeding well, de Meo said Monday.
Both Renault and Nissan are under pressure to see the landmark deal through as competition from Tesla Inc. and Chinese EV makers intensifies.
With the governance obstacle removed, the parties now want to reach a final agreement as soon as possible, the people said. Lawyers have been dispatched to each of the partner’s home countries to make progress on the accords, they said.
Renault is targeting an initial public offering of Ampere as soon as the fourth quarter.
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