French auto major Renault group has sought approval from fair trade regulator CCI to buy out its Japanese partner Nissan’s remaining 51 per cent stake in their Indian manufacturing joint venture — Renault Nissan Automotive India Pvt Ltd. Renault Group B V and its nominee Renault SAS have proposed to acquire the entire shareholding of the Nissan entities in Renault Nissan Automotive India Pvt Ltd (RNAIPL).
“The proposed combination relates to the acquisition of equity shares and fully paid-up zero-coupon non-convertible redeemable preference shares held by Nissan Motor Company Ltd Japan and Nissan Overseas Investments B V in the target (RNAIPL) by acquirer 1 (Renault Group B V) and its nominee, acquirer 2 (Renault SAS),” a notice filed with the Competition Commission of India (CCI) said on May 16.
Renault Group B V is engaged in the designing and manufacturing of passenger cars and light commercial vehicles worldwide and Renault SAS is engaged in the construction, maintenance and manufacturing of parts and equipment.
The proposed combination is an acquisition and is notified to the CCI under Section 5(a)(i)(A) of the Competition Act, 2002, it added.
As per the parties, the relevant market definition may be left open as the proposed deal involves only a change in the corporate structure of the target, with no impact on the competitive dynamics in any relevant market in India.
The combination does not raise competition concerns regardless of how the markets are defined, they said.
In March this year, Renault Group said it will buy out Nissan’s 51 per cent stake in their Indian joint venture RNAIPL for an undisclosed amount.
The JV firm operates the alliance’s Chennai-based production facility, which rolls out models for both Renault and Nissan brands.
As part of a global framework agreement signed between Renault Group and Nissan, Renault Group would own 100 per cent of Renault Nissan Automotive India, by acquiring the 51 per cent shareholding currently held by Nissan.
The company, however, did not disclose the financial details of the transaction.
Nissan will continue to use RNAIPL for sourcing vehicles for India and for exports in the coming years, Renault Group said.
Meanwhile, Renault Group and Nissan will continue to operate jointly, Renault Nissan Technology & Business Center India (RNTBCI) in which Nissan will retain its 49 per cent stake and Renault Group will hold its 51 per cent stake.
