VIEW Nissan and Renault agree to overhaul alliance, putting themselves on equal footing |
30 january (Reuters) – Nissan Motor Co ( 7201.T ) and Renault SA ( RENA.PA ) are two decades old car have agreed to a major restructuring of their manufacturing alliance that will put them on an equal footing and see the Japanese company. Invest in Renault’s new electric business.
COMMENTS
JP MORGAN
“We see today’s announcement as a positive signal for both institutions to improve… industrial cooperation in many regions, esp Europe and cost containment in Latam.
“We understand that Renault can maintain its technology within the alliance, which allows the firm to cooperate with other foreign partners outside the Renault-Nissan alliance.
“We believe that by rebalancing the company’s close holdings with Nissan, we still have 28.4% of Nissan shares. France while keeping it in trust, it will create the necessary trust between the alliance to improve industrial cooperation.
“In general, we welcome this step, which will strengthen industrial cooperation within the framework of the alliance.”
JEFFERIES
“The rescaled capital structure should help sustain the Alliance, preserve synergies and open up strategic opportunities for both parties.
“The rebalanced Alliance should help mitigate valuation discounts, but management still needs to be sure of value leakage as it plans Ampere’s IPO and future minority investments.”
JOHN WITHAAR, HEAD OF ASIA SPECIAL SITUATIONS, PICTET ACTIVITY MANAGEMENT
“Given the competing cultural and business differences between the companies, while it has been clear for some time that the alliance will need to be restructured, it is not expected that there will be a significant change in the relationship other than an orderly disposition. Renault holding in Nissan to establish relations on an equal economic basis.
“The ability to exercise voting rights (by Nissan) is welcomed from a corporate governance perspective and acts as a safeguard to align interests between the two parties.
“The outlook is neutral to mildly positive in the medium to long term. Ultimately, this means that the disorderly dissolution of the alliance has been avoided, which is positive. In general, this car shows the changes that manufacturers were forced to adopt to fix the problem. Companies are now more willing to partner to achieve scale and technological advantage than in previous eras.”
MASAYUKI KUBOTA, Chief Strategist at RAKUTEN SECURITIES
“It should be looked at from a short and long-term perspective.
“In the short term, there may be a sell-off (of Nissan shares) due to worsening supply and demand. But in the long run, the normalization of capital relations will increase Nissan’s managerial freedom. , USAfacilitating the adoption of a strategy focused on China and emerging markets.”
GREGOIRE LAVERNE, APICIL ASSET MANAGEMENT
“The market is waiting for more details… This, in a way, shows the failure of the first version of the alliance.”
Reporting by Susan Mathew in Bengaluru, Rae Wee in Singapore, Daniel Leussink in Tokyo and Sudip Kar-Gupta in Paris; Edited by Kirsten Donovan
Our standards: Thomson Reuters Trust Principles.
2023-01-30 16:13:49
Source – reuters
Translation“24 HOURS”