# Nissan pushes partner Renault to sell down stake, may raise funds -source Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-10 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Nissan Presses Renault to Cut Stake to 15% for New EV Unit Meta Description: Nissan Motor Co Ltd is urging Renault to reduce its stake to 15% to invest in Renault's new electric vehicle unit. Talks ongoing for potential deal. URL: https://financedigest.com/nissan-pushes-partner-renault-to-sell-down-stake-may-raise-funds-sourcehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-09t055154z3lynxmpei9709prtroptp4renault-france-1736815072894-compressed.jpg) (Reuters) -Nissan Motor Co Ltd is pressing French partner Renault SA to cut its stake in the Japanese automaker as much as possible, ideally to 15%, and may consider raising funds to buy back the shares, a source familiar with the matter said. The demands were made in exchange for Nissan agreeing to invest in Renault’s new unit being set up to house its electric vehicle (EV) assets, said the source, who sought anonymity as the talks are not public. Renault owns about 43% of Nissan, which wants its French ally to wind down the stake to 15%, drawing level with Nissan’s share in the alliance partner, the source said. The stake sale would not affect their business alliance and Nissan may [need to raise funds](https://www.financedigest.com/need-additional-funding-but-not-sure-how-to-go-about-it.html "Need additional funding but not sure how to go about it?") to buy the shares back from Renault, the source added. A Nissan spokesperson declined to comment. Renault did not immediately reply to Reuters’ requests for comment. The stake selldown talks were first reported by the Wall Street Journal and news agency Bloomberg said [Renault was open to reducing its stake in Nissan](https://www.financedigest.com/from-boom-to-bottom-and-now-big-change-renault-and-nissan-reshape-alliance.html "From boom to bottom and now big change: Renault and Nissan reshape alliance"), citing people familiar with the talks. Renault is [pushing ahead with plans](https://www.financedigest.com/ikea-plans-new-u-s-stores-in-2-2-billion-push-to-challenge-walmart-and-wayfair.html "IKEA plans new U.S. stores in .2 billion push to challenge Walmart and Wayfair") to split its EV and combustion engine businesses in a bid to catch up with rivals such as Tesla and Volkswagen in the race to cleaner driving. It expects to unveil a detailed blueprint for the new EV entity at a capital [markets day](https://www.financedigest.com/sterling-snaps-four-day-drop-but-gilt-market-havoc-tempers-gains.html "Sterling snaps four-day drop, but gilt-market havoc tempers gains") this autumn. As the negotiations intensify, Renault’s [Chief Executive Luca de Meo is set](https://www.financedigest.com/g7-finance-chiefs-agree-on-russian-oil-price-cap-but-level-not-yet-set.html "G7 finance chiefs agree on Russian oil price cap but level not yet set") to attend Sunday’s Formula 1 race in Suzuka, giving him an opportunity to speak with his Nissan counterpart, Makoto Uchida, another source said. This weekend’s talks are unlikely to yield concrete results, the first source said, but [negotiations could bring a deal](https://www.financedigest.com/s-africa-negotiates-deal-with-eu-to-clear-citrus-blockage-at-ports.html "S.Africa negotiates deal with EU to clear citrus blockage at ports") before Nov. 8, when de Meo [plans to present an update of his strategy](https://www.financedigest.com/how-to-create-a-pr-plan-and-link-it-to-your-business-marketing-strategy.html "How to create a PR plan and link it to your business marketing strategy"). Alliance partners Nissan and Mitsubishi have not yet said whether they will take part in Renault’s [future EV unit](https://www.financedigest.com/the-future-of-fintech-and-open-source-cloud-solutions-in-the-united-kingdom.html "The future of fintech and open source cloud solutions in the United Kingdom"). The source said Mitsubishi was also [considering taking a single-digit percent stake in Renault’s](https://www.financedigest.com/renault-considers-making-mass-market-evs-in-india-sources.html "Renault considers making mass-market EVs in India -sources") EV unit. (Reporting by Maki Shiraki and Satoshi Sugiyama in Tokyo, Akanksha Khushi in Bengaluru; Additional reporting by Gilles Guillaume in Paris; Editing by Clarence Fernandez and Ana Nicolaci da Costa) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---