Nissan shares slide 5% after report Renault exploring stake reduction

TOKYO, April 25 (BNA): Shares of Nissan Motor Co., Ltd. fell 5%, posting their biggest drop in more than a month, after a report that major shareholder Renault may consider reducing its stake in the Japanese automaker.


Bloomberg reported Friday that Renault may consider reducing its stake in Nissan as part of plans to spin off its electric car business. Reuters reported that the French carmaker is pressing ahead with plans to split its electric and combustion engine business in a bid to catch rivals such as Tesla and Volkswagen.


Renault said on Friday that all options are on the table to separate the electric car business, including a possible public listing in the second half of 2023.


Thierry Bethune, Renault’s chief financial officer, said any plans would be subject to approval by alliance partner Nissan, adding that the Japanese carmaker was “in the know” as Renault weighed its options.


Renault and Nissan declined to comment on the report.


Nissan shares slid to 509.8 yen in Tokyo, posting their biggest one-day drop since early March and underperforming the nearly 2% drop in the Nikkei.


The two-decade-old alliance of carmakers, which includes Mitsubishi Motors, has been shaken by the ouster of alliance founder Carlos Ghosn in 2018 amid a financial scandal. They have since pledged to pool more resources.


In January, they said they would work closely together to make electric cars. They detailed a $26 billion investment plan for the next five years.

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But their unequal relationship has long been a source of contention in Japan. Renault owns 43.4% of Nissan, which in turn owns 15% of its non-voting shareholders. Renault rescued Nissan two decades ago, but is now the smallest automaker by sales.


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