(MENAFN- Trend News Agency)
Nissan Motor Co Ltd on Thursday gave some details of its
two-decade-old alliance agreement with top shareholder Renault SA
for the first time, revealing the French automaker cannot
unilaterally increase its stake beyond 44.4%, Trend reports with reference
to Reuters .
In an annual securities report, Nissan said Renault cannot raise
its stake without Nissan's permission except in cases such as if
another entity bids for the Japanese automaker.
Renault's stake is around 43%. Nissan owns 15% of Renault but
without voting rights.
This is the first time Nissan has revealed details of the
so-called Restated Alliance Master Agreement, though Renault has
previously disclosed elements. Their relationship has been a source
of tension in Japan where it is widely seen as unequal.
The filing showed Nissan is allowed to acquire an additional
stake in Renault if the French automaker makes a shareholder
proposal that Nissan's board does not support.
The Japanese automaker can also increase its stake if Renault
does not support its proposal for a Nissan board member selection,
the filing showed.
Thursday's disclosure came after a shareholder proposal to make
the alliance agreement public was voted down at Nissan's annual
general meeting this week.
Nissan said it would disclose the agreement by Thursday to the
extent it did not violate confidentiality obligations.
Shares of Nissan were down 2.8% at 533.5 yen, underperforming
the Nikkei 225 average, which was down 1.3%.
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