Nissan requires its partner Renault to decrease their share

Nissan Motor Co Ltd is putting pressure on Renault SA (OTC:RNLSY) to reduce its investment in the Japanese automaker and restructure their more than 20-year-old partnership, according to the Wall Street Journal, citing people familiar with the discussions.

Renault (EPA:RENA) owns approximately 43% of Nissan (OTC:NSANY), while Nissan (OTC:NSANY) holds 15% of its largest shareholder without voting rights.

Nissan disclosed for the first time in June the specifics of its alliance agreement with major shareholder Renault, which prohibits Renault from increasing its stake unilaterally above 44.4%.

According to the article, they have discussed whether Nissan will join Renault's new subsidiary that will house its electric vehicle (EV) assets in exchange for its French ally selling down its Nissan investment.

Nissan's chief operating officer Ashwani Gupta was among the executives who traveled to France last month to discuss a potential investment in Renault's new electric vehicle (EV) division, according to the publication.

In an effort to catch up to competitors such as Tesla (NASDAQ:TSLA) and Volkswagen (ETR:VOWG p) in the race to greener driving, Renault is moving forward with plans to separate its electric vehicle (EV) and internal combustion engine (ICE) divisions.

This fall, a comprehensive plan for the new EV organization is expected to be unveiled.

Nissan did not immediately respond to Reuters' request for comment after regular business hours, whereas Renault declined to comment on the report.