French carmaker Renault and Japanese automotive manufacturer Nissan managed to strike a deal with the government of France Friday, ending an eight-month dispute over the increasing influence of the state over the operations of the allied carmakers, according to The Economic Times.
Renault and Nissan's partnership was thrown into a crisis in April after Emmanuel Macron, an economy minister of the French government, initiated an increase in the state's stake in Renault to 19.7 percent, followed by the introduction of several laws which increase the power of long-term investors in the company.
Macron's decisions fuelled assumptions that he was attempting a backdoor nationalization of Renault and that he was attempting to use his powers to generate jobs in France. Doing so would involve moving production from Nissan's biggest factory in the U.K., located in Sunderland, reported The Guardian.
Investors, however, do not seem to be content with the deal's results. After its board approved two new contracts to cap the French government's increased weight in non-strategic shareholder votes on Friday, Renault's shares fell in the stock market, according to Reuters.
Despite the seeming disappointment of investors, Nissan has stated that it was "very pleased" with the agreement.
After being rescued by Renault back in 1999, Nissan has quickly risen up, far outgrowing its French savior in terms of engineering innovations and other key areas. Its alliance with Renault is ranked as the world's fourth-largest carmaker in terms of combined sales.
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