Renault
Note: This is a daily stock update and the information stands true as of 18/12/24, 09:00 CET.
Company Update:
Expert Opinion:
If confirmed, the Honda/Nissan merger would be an excellent news for Renault. However, with only 15% in Nissan, its influence on the new co would be minimal (3-5% shareholder in the best case). With a 36% stake in Nissan, they would be significantly more able to weigh on the decisions. But remember the 20% stake is in a trust and they have no voting rights. It will be interesting to see whether they fully exit (at a much better price than previously anticipated) or if they try to secure a partnership with a new larger company. In any case it is good news for Renault. The valuer of the Nissan stake was €3bn, the move adds €600m to our NAV, mechanically adding €2 per Renault share.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
Company Update:
After Foxconn offered to take a controlling stake in Nissan, Japanese press mentions discussions regarding a potential merger between Nissan and Honda (and Mitsubishi).
Nissan shares rose 24% on the news. Renault holds a 36% stake in Nissan and we believe would back such a deal. A combination of Honda /Nissan would be a much more potent partner .
Theoretically, Renault is supposed to lower its stake in Nissan to 15% and sell the remaining 21%. Obviously with higher Nissan price, this operation would enable a faster deleveraging than expected enabling Renault to get back more quickly than expected to Investment grade.
If confirmed, the Honda/Nissan merger would be an excellent news for Renault. However, with only 15% in Nissan, its influence on the new co would be minimal (3-5% shareholder in the best case). With a 36% stake in Nissan, they would be significantly more able to weigh on the decisions. But remember the 20% stake is in a trust and they have no voting rights. It will be interesting to see whether they fully exit (at a much better price than previously anticipated) or if they try to secure a partnership with a new larger company. In any case it is good news for Renault. The valuer of the Nissan stake was €3bn, the move adds €600m to our NAV, mechanically adding €2 per Renault share.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
Subscribe to our blog
Alphavalue Morning Market Tip
Solid start of 2025 with signs of recovery in key markets.