Posted 24 April 2022, 4:32 PMUpdated on April 25, 2022, 5:51 PM
Necessity is the mother of innovation, and sometimes even innovation, as Renault testifies. The “Renaulution” of the managing director, Luca de Meo, obviously borrows from the spirit of the times – a project to divide the electricity sector that hesitates between the simple publication of different figures and quotations in a good and appropriate manner until the end. of next year – but also in “Rénaultvention”, which brings drawings from old boxes. The reduction of the stake in Nissan and the rebalancing of the relevant weight in the Union, which would be under investigation according to Bloomberg, are part of it.
The idea is certainly a smart one, breathing life back into the damaged relationship by ending the capitalist missteps long criticized by investors while getting cash for Europe’s last debt-ridden manufacturer. But is it the right time?
Nissan’s stock has not returned to its pre-crisis lows, and excluding the pandemic, is at its lowest level since 2009. The 4.6 billion euros that Renault would remove from reducing its stake from 43% to 15%. It represents half of its value before the arrest of Carlos Ghosn, and almost three times less than in 2015.
The financial aspect is also accompanied by the thorny question of the control of the old Régie, which the State does today alone with 15% of the capital, and which it should share with Nissan. Will it ever work?
The electrification project has so far not affected Renault’s stock market value outside of its cross-shareholdings with Nissan. This is currently negative for 1.2 billion euros, and despite the cross issued by the group on Russia, it still seems to be due to an element beyond the management’s control: the end of the war in Ukraine.
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