After two sales of Nissan shares on December 13, 2023, and on March 28, 2024, Renault Group has completed a third transaction on September 27, 2024 and sold to Nissan 195 473 600 Nissan shares, representing approximately 5.0% of Nissan’s capital.
It results in a cash inflow of €494 million, which further improves the Automotive net cash financial position and allows faster deleveraging of the Group. It also supports the Group’s target to return to an investment grade rating.
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This sale was implemented as part of the share buyback program announced by Nissan on September 26, 2024 and executed on September 27, 2024. As a result of Nissan’s decision to cancel all the bought back shares, the transaction will be accretive for Nissan’s shareholders (see table below for more details). This cancellation will be implemented on October 3, 2024.
As a consequence of the sale of 195 473 600 Nissan shares, the accounting impacts will be the following:
- On Renault Group consolidated financial statements, a capital loss on disposal of around €1,100 million, which will impact the net income (this capital loss, booked in “other operating income and expenses”, will not impact the Group’s operating income). The impact of this capital loss will have no impact on the dividend paid in 2025 on 2024 results as it will be excluded from the net income used to compute the payout ratio;
- On Renault S.A. statutory statements, a capital loss on disposal of around €120 million;
- Tax impact will be non-significant.
Evolution of Nissan capital held by Renault Group
In accordance with the New Alliance Agreement, Renault Group has no obligation to dispose of the 2.05% in excess of the 15%, and Nissan will continue to hold a 15% stake in Renault Group. However, the voting rights of Renault Group and Nissan will continue to be capped at 15%.
Source: Renault Group
