RENAULT AND NISSAN TO JOIN FORCES WITH DAIMLER

Tert.am
18:34 ~U 07.04.10

Renault, Nissan and Daimler announced on Wednesday a strategic
partnership that will see the three companies take 3.1 per cent equity
stakes in each other and work together on small cars, engines and
light commercial vehicles.

According to The Tinancial Times the tie-up will allow the
Franco-Japanese auto alliance and the German luxury group to pool
efforts on new vehicles and technologies and add essential volumes to
their production plants at a time of intense competition and rising
production and carbon dioxide compliance costs in their industry.

At a signing ceremony in Brussels, Carlos Ghosn, Renault and Nissan’s
chief executive, said the partnership would yield a net benefit of
~@2bn ($2.7bn) for Renault and Nissan over the coming five years.

Dieter Zetsche, Daimler’s chief, said that the value of the tie-up
for German carmaker would "be of the same magnitude."

The share exchange will see Renault issue new stock for Daimler’s
3.1 per cent stake in the French carmaker. Daimler will get 3.1 per
cent of Nissan from its existing shares, while Renault and Nissan
will each get 1.55 per cent of Daimler’s treasury shares.