Nissan shares rise on accord accord accord deal

Nissan shares rise on accord accord accord deal

TOKYO Reuters - Shares of Nissan Motor Corp rose early in early trade in Tokyo after the Japanese automaker and French partner Renault SA announced a sweeping overhaul of their two-decade old alliance that put them on equal footing.

Nissan shares increased almost 2%, surpassing a flat Nikkei 225 share average.

Renault held around 43% of the Japanese automaker, and Nissan did not have voting rights.

The uneven nature of the alliance has long been a source of friction for Nissan executives.

After Monday's announcement, Masayuki Kubota, chief strategist at Rakuten Securities, told Reuters that the normalization of the capital relationship will increase the amount of freedom Nissan has in terms of management, making it easier to adopt a strategy that focuses on the United States, China and emerging markets.

As part of the deal, Renault put 28% of the Japanese automaker in a French trust, which includes a lock-up that prevents share sales for a certain period, as well as a standstill obligation that puts other limits on a stock sale.

The French automaker's shares were 4% lower on Monday after the deal was announced.