Daimler unwinds cross-ownership with Renault stake sale
3:32 pm Wednesday, November 10th, 2021
By Ludwig Burger
FRANKFURT (Reuters) -German carmaker Daimler said on Wednesday its pension trust would sell the shares it holds in French partner Renault, unwinding cross-shareholdings, but added that its industrial collaboration remained intact.
The pension trust would sell about 9.2 million ordinary shares in Renault via an accelerated bookbuild offering to institutional investors after the market close on Wednesday.
Previous filings show that stake to be 3.1% of Renault’s share capital and about 5% of the voting rights.
Renault shares closed 1.9% higher at 34.30 euros, valuing the Daimler stake at 316 million euros ($365 million) but block sales typically price at a discount to regular trading.
The offering marks the end of cross-shareholdings that have tied Daimler to Renault and its partner, Japan’s Nissan Motor Co Ltd, for a decade.
In 2016, Daimler had transferred its 3.1% of Renault-Nissan to its retirement assets. Renault and Nissan both sold their 1.5% each held in Daimler in early 2021 to help them overcome financial difficulties.
Renault, whose more accessible models contrast with Daimler’s luxury brand Mercedes-Benz, was not immediately available for comment.
Under the three-way partnership, Daimler runs a factory in Mexico with Nissan while it cooperates on multi-purpose vehicles Kangoo and Citan with Renault, among other projects. Daimler has been exploring the possibility of jointly developing at least one large van model with Renault.
($1 = 0.8648 euro)
(Reporting by Ludwig Burger in FrankfurtAdditional reporting by Gilles GillaumeEditing by Matthew Lewis)
