CCI Approves Shareholdings Change Between Renault And Nissan

  • The proposed combination relates to the re-balancing of the existing cross-shareholdings between Renault S.A. and Nissan Motor Rebalancing.
  • And certain changes to the shareholding of two of their joint ventures in India, i.e., Renault Nissan Automotive India Private Limited (RNAIPL) and Renault Nissan Technology & Business Centre India Private Limited (RNTBCI).
  • As part of the Rebalancing, Nissan, through Nissan Finance Co. Ltd. (NFC), will retain its 15% shareholding in Renault.
  • Renault will transfer 28.4% of its Nissan shares into a trust estate administered by a trustee governed by French law, where the entrusted shares will be voted neutrally, subject to limited exception.
  • Renault would continue to fully benefit from the economic rights of the entrusted shares until such shares are sold.
  • Accordingly, Renault and Nissan will have a cross-shareholding of 15% of the total issued share capital and freely exercisable voting rights in each other.
  • Nissan and its affiliate entities in India are engaged in the sale of passenger vehicles and automotive parts, through its wholly-owned subsidiary, Nissan Motor India Private Limited.
  • NMIPL offers passenger vehicles in India, currently under the Nissan brand.
  • Renault and its affiliate entities in India, sell automobiles and parts through its wholly-owned subsidiary Renault India Private Limited (RIPL).
  • It offers passenger and utility vehicles in India under the Renault brand.
  • RNAIPL is currently engaged in the manufacturing and assembly of passenger vehicles, including transmissions, components, vehicle parts and the provision of related services captivity to Renault and Nissan.
  • RNTBCI is a captive automotive technology and business centre supporting Renault and Nissan’s activities in relation to research and development, engineering, manufacturing, technology, product planning, process and information technology.
Posted in Current Affairs.