Renault, Nissan Enter Binding Framework Agreement; Nissan To Invest Up To 15% In Ampere

Renault-Nissan-Mitsubishi Alliance announced new initiatives to take their partnership to the next level. The three-dimension program will include: high-value-creation operational projects in Latin America, India and Europe; enhanced strategic agility with new initiatives that partners can join; and a rebalanced Renault Group-Nissan cross-shareholding and reinforced Alliance governance. Renault Group (RNSDY.PK,RNSDF.PK,RNT.L) and Nissan (NSANF.PK,NSANY.PK) have entered into a binding framework agreement regarding the transactions, with a view of reaching definitive agreements by the end of the first quarter of 2023.

All three Alliance companies agreed to explore their existing strategies in electrification and low-emission technologies by investing and collaborating in respective member-company projects. Nissan plans to invest up to 15% in Ampere, Renault Group's EV & Software entity in Europe, with the aim to become a strategic investor. Mitsubishi Motors would consider investing in Ampere. Nissan and Mitsubishi Motors would become customers of Renault Group's Horse project.

Also, Renault Group and Nissan, the founding-members of the Alliance, have agreed to rebalancing their cross-shareholding and governance terms. The companies plan to enter into a new Alliance agreement and replace the current agreements governing the alliance. The new agreement would be put in place for an initial period of 15 years. Nissan and Renault Group would retain a 15% cross-shareholding, with a lock-up obligation, as well as a standstill obligation. Renault Group would transfer 28.4% of Nissan shares into a French trust. As a result of the transfer, Nissan would be able to exercise its voting rights attached to its shareholding in Renault Group.

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