[Stay on top of transportation news: Get TTNews in your inbox.]
Renault SA plans to sell shares in Daimler AG worth about $1.4 billion (1.2 billion euros) to secure funds for its turnaround efforts after a record annual loss.
The French carmaker will exit its entire holding in Daimler, a roughly 1.5% stake, according to a statement March 11. Renault already has enough demand for all the stock, according to people familiar with the matter, who asked not to be identified because the information is private.
Proceeds from the sale will allow Renault to “accelerate the financial de-leveraging of its automotive activity,” the company said. Renault and Daimler said their industrial partnership that dates back more than a decade will continue.
Renault warned investors last month of another challenging year following a worse-than-expected 8 billion-euro annual net loss. Chief Executive Officer Luca de Meo’s daily battles to secure enough semiconductors to keep plants open are complicating his attempt to steer the company out of the rut it’s been in since long-time leader Carlos Ghosn’s arrest in late 2018.
Daimler shares have surged since the Mercedes-Benz maker announced plans early last month to spin off its truck unit. The stock closed March 10 at a three-year high, valuing the company at 77.1 billion euros.
Want more news? Listen to today's daily briefing below or go here for more info: