Following Carlos Ghosn’s shocking arrest and removal as Nissan chairman, the Japanese automaker will reportedly seek a review of its shareholding structure regarding its alliance with Renault, hoping to work towards a more balanced partnership.
According to Automotive News Europe, the review will cover the issue of voting rights, so as to change the current structure where Renault has more influence in Nissan than the other way around.
As of right now, Renault owns 43% of Nissan (with voting rights), whereas the Japanese carmaker holds just 15% of Renault, with no voting rights. It’s been this way ever since the alliance was formed back in 1999.
Based on Japanese corporate law, Renault could lose its voting rights if Nissan raised its shareholding to more than 25%, whereas under French law, if Renault’s stake in Nissan dropped under 40%, that would give the latter voting rights in the French brand.
During a press conference following Ghosn’s arrest, Nissan CEO Hiroto Saikawa referenced the alliance’s perceived imbalance which favors Renault. The structuring of their deal had become increasingly controversial as of late, ever since Nissan started to perform really well financially.
On top of that, a report from the Financial Times claims that Ghosn had been planning to take the Renault-Nissan alliance even further and merge the two companies – a move that would have given Nissan even less power than before.