France OKs Renault's reduction in Nissan stake

The French government has agreed to let Renault reduce its stake in Nissan, Japanese industry minister Yasutoshi Nishimura said on January 20.

Tokyo has received a letter from Paris agreeing to cut the French automaker’s 43% stake in its Japanese partner, Nishimura said at a news conference in Switzerland, Japan Times reports.

The French government, the largest shareholder of Renault, had been reluctant to allow the automaker to lower its Nissan stake.

Nissan, which owns 15% of Renault, has been calling on the French automaker to cut its stake in the Japanese company to the same level.

Nishimura also said that he has replied to the letter, expressing hopes that efforts by Nissan and Renault to enhance their global competitiveness will bear fruit.

Talks between Nissan and Renault to review their capital ties also involve the Yokohama-based automaker’s investment in a new electric vehicle firm to be spun off from the French company.

The two sides are aiming to reach an agreement this month after they made progress on intellectual property protection for EV-related patents.