Renault plans to sell its stake in Daimler for about 1.2 billion euros, raising funds to recover from a record annual loss. According to a statement made by its representatives on Thursday, the French automaker will exit its Daimler stake of about 1.5%. Renault has reportedly already had buyers for all of the shares, who asked not to be named because the information is confidential.
“The proceeds from the sale will allow Renault to accelerate the reduction in the financial leverage of its automotive activities,” the company said and added that the industrial partnership with Daimler, which dates back more than ten years, will remain unchanged and not affected in any way by the deal.
Renault warned investors last month that another challenging year lies ahead after the company posted its worst annual net loss of € 8 billion. Renault CEO Luca de Meo struggles daily to ensure there are enough semiconductors to keep factories open, making it difficult for him to try to take the company out of the rut it has been in since its former leader, Carlos Ghosn, was arrested in Japan in late 2018. .
Daimler shares rose sharply after the manufacturer Mercedes-Benz announced plans to spin off its truck division earlier last month. Shares closed at a three-year high on Wednesday. Daimler has not provided any comments yet.