(Reuters) – French carmaker Renault SA is ready to reduce its stake in Japanese automaker Nissan Motor Co Ltd, Bloomberg News reported on Saturday, citing people familiar with the talks.
According to the report, Nissan is pressing Renault to reduce its stake to 15%. The French automaker owns around 43% of Nissan.
The reduction would have the effect of putting Renault on par with Nissan’s share of the French company, which is around 15% without voting rights.
In June, Nissan revealed the details of its alliance pact with the main shareholder Renault which prevents the latter from unilaterally increasing its stake beyond 44.4%.
Talks between the two companies focus on whether Nissan will join Renault’s new unit being created to house its electric vehicle (EV) assets in return for its French ally scrapping Nissan’s stake, according to a Wall Street Journal report from Friday.
Renault plans to split its electric vehicle (EV) and combustion engine businesses as it seeks to catch up with rivals such as Tesla and Volkswagen in the race for cleaner driving.
Executives from both companies discussed Renault’s plan to reshape their alliance at meetings in France and Japan.
Negotiations between the companies are intensifying, the Bloomberg report said, adding that Renault CEO Luca de Meo is due to attend the Formula 1 race at Suzuka on Sunday, which will give him the opportunity to speak with Nissan CEO Makoto Uchida.
The report, however, says the weekend talks are unlikely to yield concrete results.
Renault did not immediately respond to Reuters’ request for comment. A Nissan spokesperson did not immediately respond to request for comment outside of normal working hours.
(Reporting by Akanksha Khushi in Bengaluru)