The Renault group is selling its entire stake in Daimler in order to “accelerate the deleveraging of its automotive division.”
Thunderclap. The Renault group has announced the sale of its entire stake in Daimler “as part of a placement with qualified investors”, which represents 16,448,378 shares, i.e. 1.54% of the capital of the German automotive group.
Under the impetus of their respective boss, Carlos Ghosn and Dieter Zetsche, the two firms, as well as Nissan, had sealed a simultaneous cross shareholding in 2010. The latter then reinforced the strategic cooperation agreement signed between the three manufacturers. Since then, Daimler and Renault have multiplied partnerships around many models (Smart, Twingo, Citan, Kangoo, Classe X, Alaskan, etc.) and several engines (Renault units installed under the hood of Mercedes vehicles).
€ 1.2 billion for Renault’s debt reduction
But today, it’s time for savings and the sum raised by the sale of these shares, which amounts to 1.143 billion euros, “will enable Groupe Renault to accelerate the financial deleveraging of its Automotive business“, announces the manufacturer in a press release.
The diamond has it is true recorded a historic loss of 8 billion euros in 2020.
The Renault / Daimler partnership not impacted
“The industrial partnership between the Renault Group and Daimler is unchanged and is not impacted by this financial transaction”, specifies the firm.
Renault will notably participate in the development and manufacture of the next generation of the Mercedes Citan, cousin of the new Kangoo. The collaboration between the two brands should even soon be extended to future large vans.
Daimler retains 3.1% of the capital of Renault and Nissan, while Nissan, Renault’s partner in the Alliance, still retains 1.54% of Daimler.
Renault puts the Fonderie de Bretagne up for sale
At the same time as this announcement, and always with the aim of replenishing its funds, Renault also indicated that it was looking for a buyer for the Fonderie de Bretagne, a factory located in Caudan, in Morbihan (56), where suspension arms, exhaust manifolds and elbows, as well as gearbox differentials are manufactured. The factory employs some 350 people …
Sources: Renault, AFP, Reuters