CCI approves re-balancing of cross-shareholdings between Renault and Nissan
Competition Commission of India (CCI) has cleared a combination proposal for the re-balancing of existing cross-shareholdings between Renault and Nissan, the regulator said on Thursday.
The proposal also relates to certain changes to the shareholding of two of their joint ventures in India--Renault Nissan Automotive India Private Ltd and Renault Nissan Technology & Business Centre India Private Ltd, the CCI said in a statement.
Nissan, through Nissan Finance Co, will retain its 15% shareholding in Renault. Renault will transfer 28.4% of its Nissan shares into a trust estate administered by a trustee governed by French law, where the entrusted shares will be voted neutrally, subject to limited exceptions.
Renault would continue to fully benefit from the economic rights from the entrusted shares until such shares are sold.
“Accordingly, Renault and Nissan will have a cross-shareholding of 15% of the total issued share capital and freely exercisable voting rights in each other, that is, both Renault and Nissan will hold 15% shareholding in each other,” the CCI said, adding that a detailed order will come in due course.
Nissan and its affiliate entities in India are engaged in the sale of passenger vehicles and automotive parts, through its fully-owned arm Nissan Motor India Private Ltd.
Renault and its affiliates sell automobiles and parts in India through its wholly-owned subsidiary Renault India Private Ltd.
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