Renault to report US$11.2bil loss on Nissan stake in first half
PARIS: French carmaker Renault said on Tuesday it will report an extraordinary loss of about 9.5 billion euros ($11.2 billion) on its stake in Nissan Motor in the first half after changing the way it accounts for the investment.
The change comes as the two companies loosen their ties and adjust a two-decade long partnership, with Renault gradually lowering its stake in the Japanese firm which is battling slumping sales and scrambling to boost cash.
Renault owns 35.7% of Nissan, with 17.05% held directly and the rest through a trust.
It said in the future, any change in the value of the holding would be directly recognised in equity and assessed based on Nissan's share price, with no impact on its net income nor on dividends it pays out.
It added that there would be no change to operational projects and collaboration between the two firms.
Renault, which reports its first-half results on July 31, is also seeking a new CEO, with current leader Luca de Meo due to depart on July 15 and later take the helm at luxury firm Kering. ($1 = 0.8483 euros) - Reuters
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