Japanese automaker Nissan Motor Co. has committed to invest up to Euro 600 million ($664 million) in Ampere, Renault Group’s new electric vehicle (EV) and software entity in Europe.

Renault and Nissan said in a statement on Wednesday that this investment opportunity aligns with Nissan’s electrification strategy, creating multiple potential benefits and synergies that complement Nissan’s own goals and initiatives in Europe and other potential markets.

Being a strategic investor in Ampere, Nissan will also secure a board seat.

According to the statement, Renault and Nissan have entered into the definitive agreements contemplated by the binding framework agreement executed and announced on February 6, 2023.

The agreements focus on extending the Renault–Nissan–Mitsubishi Alliance collaboration in three areas: high-value-creation operational projects in India, Latin America and Europe; enhanced strategic agility with new initiatives that partners can join; and rebalanced Renault-Nissan cross-shareholdings and reinforced Alliance governance.

In the first area, the partners are considering new key projects in Latin America, India and Europe that aim to deliver win-win, large-scale and actionable benefits.

Among these, Renault and Nissan have already announced their renewed commitment to Indian operations through new investment and vehicles.

In the second area of enhanced cooperation, the partners agreed to explore their existing strategies in electrification and low-emission technologies by investing and collaborating in respective member-company projects that could provide incremental value to each individual business.

“The agreements that have been signed today allow us to step into the next chapter of the Alliance. They strengthen our long-standing partnership and will maximize value creation for each Alliance member,

“This also lays the foundations for a new balanced, fair, and effective governance,” said Jean-Dominique Senard, Chairman of The Alliance.

Nissan Motor Co., Ltd. President and Chief Executive Officer Makoto Uchida said that with the finalization of the definitive agreements, the firm has entered the next phase of collaboration with Renault and Mitsubishi Motors in mutually beneficial areas of innovations.

“This will create additional value through initiatives aligned to Nissan’s Ambition 2030 and electrification strategy.

“The investment opportunity in Ampere complements and strengthens Nissan’s ongoing electric push in Europe and will deliver numerous synergies, including cost efficiencies, regulatory compliance, and a broader range of EV products and powertrains，” he added.

Renault Chief Executive Officer Luca de Meo said that these agreements provide the firm with a solid base to reactivate business operations worldwide in key markets, with the potential to generate hundreds of millions in value for Renault, Nissan, Mitsubishi and stakeholders.

“They give us the strategic agility that we need more than ever in today’s rapidly evolving environment. We are all engaged with the right mindset and welcome Nissan as a strong partner in our upcoming EV and Software pure player Ampere,

“It confirms the attractiveness of the project to be front runner in Europe, allowing Renault and its Alliance partners to position themselves ahead of the starting grid for the EV and software race in Europe,” he added.

The definitive agreements also formalize the rebalancing of the Renault-Nissan cross-shareholdings and the reinforcement of the governance of the Alliance.

Renault and Nissan entered into a new Alliance agreement that will replace the current agreements governing the Alliance.

As announced on February 6, 2023, Renault and Nissan will retain cross-shareholdings of 15 percent with lock-up and standstill obligations.

Renault will transfer 28.4 percent of its Nissan shares into a French trust, where the entrusted shares will be voted neutrally, subject to limited exceptions.

Renault would continue to fully benefit from the economic rights (dividends and proceeds of share sales) from the entrusted shares until such shares are sold.

The transfer to the trust would trigger no impairment in Renault financial statements.

As a result of the transfer of the 28.4 percent of Nissan shares to the trust, Nissan would be able to exercise its voting rights attached to its shareholding in Renault.

The voting rights of Renault and Nissan would be capped at 15 percent of the exercisable voting rights, with both companies able to freely exercise their voting rights within such limit.

Renault would instruct the trustee to sell the entrusted Nissan shares if commercially reasonable for Renault, but it has no obligation to sell the shares within a specific pre-determined period of time.

Renault would have full flexibility to sell the Nissan shares held in the trust, within a coordinated and orderly process with Nissan, in which Nissan would benefit from a right of first offer, to its or the benefit of a designated third party.

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