The planned combination comprising a rebalancing of the current cross-shareholdings between Renault and Nissan has been approved by the Competition Commission of India (CCI).
The proposed combination pertains to a number of issues, including the rebalancing of the current cross-shareholdings between Nissan Motor Co. Ltd. (Nissan) and Renault S.A. (Renault), as well as modifications to the shareholding of two of their joint ventures in India, Renault and Nissan Technology & Business Center India Private Limited (RNTBCI) and Renault and Nissan Automotive India Private Limited (RNAIPL).
Nissan will keep its 15% stake in Renault through Nissan Finance Co. Ltd. (NFC) as part of the Rebalancing. 28.4% of Renault’s Nissan shares will be transferred to a trust estate under French law, controlled by a trustee, with voting rights over the entrusted shares being neutral with few exceptions. Until the shares are sold, Renault will continue to receive full benefits from the economic rights associated with the entrusted shares. As a result, 15% of the total issued share capital will be held by Renault and Nissan as cross-shareholdings, with both companies having freely exercisable voting rights over the other 15% of the ownership.
Nissan: Through its wholly-owned subsidiary, Nissan Motor India Private Limited (NMIPL), Nissan and its related businesses in India sell passenger cars and auto parts. NMIPL sells passenger cars in India at the moment under the “Nissan” name.
Renault: Through its wholly-owned subsidiary Renault India Private Limited (RIPL), Renault and its affiliate businesses in India sell cars and parts. In India, it sells passenger and sport utility cars under the “Renault” name.
RNAIPL: RNAIPL presently manufactures and assembles passenger cars, including parts, components, and transmissions. It also offers related services to Nissan and Renault in-house.
RNTBCI: RNTBCI is a wholly owned automotive technology and business center that assists with R&D, engineering, manufacturing, technology, product planning, process, and information technology for Nissan and Renault.