Tuesday at its annual general meeting (AGM), Nissan (OTC:NSANY) Motor Co Ltd rejected a shareholder motion that would have led to the disclosure of a decades-old agreement with 43 percent investor Renault SA (OTC:RNLSY).
One investor requested prior to the AGM that Renault (EPA:RENA) be deemed Nissan’s parent company for transparency reasons, which would require the release of the agreement governing the automakers’ capital and business cooperation.
The investor said that the absence of publishing prohibits shareholders from criticizing the partnership, which therefore stays “unequal.” Nissan only has a 15 percent share in Renault that is nonvoting.
Observers anticipated that the French automaker’s objection would derail the deal. Nissan said last month that it would reveal the arrangement’s terms in its annual report if doing so would not break a confidentiality agreement.
Disclosure of the whole of the Restated Alliance Master Agreement would show the extent of the 23-year-old partnership, which was founded when Renault saved Nissan from the verge of bankruptcy. This transaction has been a subject of contention for quite some time, since it permits Renault to strengthen its role in Nissan’s administration.
The alliance, which acquired Japan’s Mitsubishi Motors (OTC:MMTOF) Corp in 2016, was shaken by the financial scandal that led to the removal of alliance founder Carlos Ghosn in 2018. Since then, the manufacturers have committed to pool more resources and collaborate more closely to produce electric cars (EVs).
When it comes to reorganizing its company in reaction to the rapid electrification of the car industry, Renault said in April that all alternatives were on the table, including a prospective public offering of its EV unit.
It is too early for Nissan, an EV pioneer with its 2010 Leaf, to contemplate spinning off its EV business, the company’s chief operating officer said last month.