 "Stocks, shares, stock maket")
The Competition Commission of India (CCI) on Thursday said it has approved the deal involving the re-balancing of the existing cross-shareholdings between Renault and Nissan.
Renault and Nissan are engaged in the sale of passenger vehicles and automotive parts through their wholly-owned subsidiaries Renault India Pvt Ltd (RIPL) and Nissan Motor India Pvt Ltd (NMIPL).
The combination relates to the re-balancing of the existing cross-shareholdings between Renault SA and Nissan Motor Co Ltd and certain changes to the shareholding of two of their joint ventures in India, Renault Nissan Automotive India Pvt Ltd and Renault Nissan Technology & Business Centre India Pvt Ltd, according to an official release.
As part of the rebalancing effort, Nissan, through Nissan Finance Co Ltd, will retain its 15 per cent stake in Renault.
Meanwhile, Renault will transfer 28.4 per cent of Nissan shares into a trust estate administered by a trustee governed by French law.
Renault will continue to benefit from the economic rights of those shares until they are sold.
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As a result, both Renault and Nissan will have a 15 per cent stake in each other.
Renault Nissan Automotive India Pvt Ltd (RNAIPL) is engaged in the manufacturing and assembly of passenger vehicles, including transmissions, components, and provision of related services captively to Renault and Nissan.
Renault Nissan Technology & Business Centre India Pvt Ltd (RNTBCI) is a captive automotive technology and business centre supporting Renault and Nissan's activities in relation to research and development, engineering, and product planning.
Deals beyond a certain threshold require approval from CCI, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
