The Strategist

France to Reduce Stake in Renault to 15%

11/10/2015 - 16:46

The French government still aims to reduce their stake in Renault's cars down to 15%, said Economy Minister Emmanuel Macron.

He added that the government is opposed to significant changes in the alliance of Renault and Japan's Nissan Motor, which has existed for 16 years, according to MarketWatch.

In April, France has acquired 4.7% of the French carmaker, having increased its share from 15% to 19.7% on the eve of the annual shareholders meeting in order to acquire the right of veto. Then the vote was proposed to cancel the rule, under which shareholders, owning securities for over two years, automatically get the double voting rights. The government managed to block the proposal, and the rule was upheld.

State fund APA promised to sell 4.7% stake in Renault earlier this autumn, however, in early October, the government decided to temporarily postpone plans to reduce their stake in the background of the scandal with the German Volkswagen, which caused a drop in prices of European automakers securities.

Shares of Renault fell down 0.2% during the Tuesday trading. The company's capitalization is about 27.5 billion euros.