Renault set to cut Nissan stake from 43% to 15%

EPA/EVERETT KENNEDY BROWN

Renault S.A. and Nissan Motor Co. Ltd. reached a breakthrough in negotiations over the future of their alliance, Nikkei reported on Monday. The agreement will see Renault's share in Nissan drop from 43% to 15%, which is the size of Nissan's stake in Renault, according to people familiar with the matter.

The two companies are expected to announce the deal in principle later in the day, with details to come in February. Their original disagreement stemmed from opposed views on issues like intellectual property and stakes in the electric vehicle division, with sources saying that a number of issues were bundled together so that "it was impossible to reach an agreement before all the other issues were finalized."

Baha Breaking News (BBN) / DJ