Nissan repurchases and cancels its own shares from Renault for 359 million euros – Automotive

The operation was already known, but it has now become official your conclusion. Nissan has just announced that it has acquired 2.51% of its own shares from Renault, which remains a shareholder, after the French company presented a sale proposal to the partner, walking for the established objective in November in own 15% of each other.

The transaction, carried out on the Tokyo Stock Exchange, had a total cost of 359.227 million euros and it must have been concluded on March 28th, one day after the meeting of the advice from administration.

“Nissan received a proposal from Renault regarding the sale of 280,690,000 Nissan shares held in a French investment fund, and decided to acquire 100,242,900 shares using its right of first offer, as agreed with Renault under the Agreement Nova Aliança”, according to the company’s statement.

Nissan then decided to cancel this same number of shares, in a process carried out on April 3rd.

The Japanese manufacturer states that the decision follows the “commitment” that the company maintains with shareholders to “increase their returns”, as well as ensuring sustainable financial resources for future business. O cancellation of acquired shares is a strategy that aims, in most cases, to benefit the shareholders who remain in the company, by increasing their participation.

“In the future, Nissan will continue to provide high value to all shareholders, with the aim of ensuring a total shareholder return of more than 30%, in accordance with its business plan”, he explains.

The operation is part of the process of “rebalancing” cross-shareholdings between the partnership, agreed in November last year, at a fixed value of 15%. Renault then agreed to reduce its stake in Nissan from around 43% to the established value, transferring 28.4% of the Japanese company’s shares to the aforementioned French fund.

In fact, this is not the first sale of shares between the two companies. In the last month of 2023the French manufacturer sold around 5% that it held in Nissan for 765 million euros, as part of the Japanese company’s share buyback program.

* News edited by Pedro Curvelo