The sale is part of Nissan’s share buyback program announced on September 26, 2024, and executed the following day. Due to Nissan’s choice to cancel all repurchased shares, this transaction will benefit Nissan’s shareholders (see table below for additional information). The cancellation is scheduled to take effect on October 3, 2024.
Following the sale of 195,473,600 Nissan shares, the accounting repercussions will include:
- For the consolidated financial statements of Renault Group, there will be a capital loss from the sale estimated at approximately €1,100 million, which will impact the net income. This capital loss will be recorded under “other operating income and expenses” and will not affect the Group’s operating income. Furthermore, this loss will not influence the dividends paid in 2025 based on the 2024 results, as it will be excluded from the net income calculation for the payout ratio;
- In Renault S.A.’s statutory statements, a capital loss on disposal of about €120 million;
- The tax impact will be minimal.
Changes in Nissan capital owned by Renault Group
Under the New Alliance Agreement, Renault Group is not required to sell the 2.05% stake exceeding the 15% threshold, ensuring that Nissan retains a 15% interest in Renault Group. Nonetheless, the voting rights for both Renault Group and Nissan will remain limited to 15%.
SOURCE: Renault Group
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