Renault has revealed that it will sell 34.02% of its South Korean unit to China’s Geely Automobile Holdings for around 264 billion won (about 195 million euros).
In this way, the French car manufacturer frees up funds to be able to invest in its main markets and in electric models, which it considers to be behind schedule, writes the agency. Reuters.
Renault, whose sales fell for the third year in a row in 2021, is executing a turnaround plan aimed at boosting profit margins and splitting its electric and combustion model businesses.
The decision to sell more than 34% of its South Korean unit (Renault Korea Motors) comes a week after international media reported that Renault, Nissan’s main shareholder, may reduce its stake in the Japanese company.
For China’s Geely, this is a way to gain a foothold in the South Korean market, which is dominated by local brands Hyundai and Kia.
According to the news agency, Renault will issue 45.4 million shares at 5,818 won (4.3 euros) per share to Geely.
At the end of 2021, Renault owned 80% of its Korean unit. The remaining 20% was held by the credit card company Samsung Card, which announced last December that it intended to sell its stake in the company.
Source: Expresso by expresso.pt.
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