TOKYO – Renault Group and Nissan have agreed on a basic framework for rebalancing their decades-old alliance in which Renault will reduce its controlling stake in Nissan to 15 percent from 43 percent, while Nissan will take a share in a new electric vehicle spinoff from Renault.

In joint statements on Monday, Nissan and Renault said the proposal was still subject to approval by their boards and that a formal announcement will come “immediately” after approval.

People familiar with the long-running talks, which began early last year, said the final structure of the deal was expected to go before the boards for review and approval as early as this week.

An announcement could happen as early as Feb. 6. 

“The ambition is to strengthen the ties of the Alliance and maximize value creation for all stakeholders,” the companies said.

Under the proposal, Renault will reduce its 43 percent stake in Nissan to 15 percent, matching the 15 percent stake Nissan holds in Renault. Both sides will be able to exercise voting rights up to 15 percent. Currently Nissan has no voting rights attached to its stake – a longtime source of contention. 

Renault will transfer 28.4 percent of its share to to a French trust, where their voting rights would be “neutralized” for “most decisions,” the companies said. But Renault would retain rights to dividends and share-sales proceeds, thereby preserving the value of the holding.

The trustee will sell the shares “if commercially reasonable for Renault Group in a coordinated and orderly process,” the statement said, but there is no obligation to sell in a set period of time.

At the same time, the companies said Nissan will invest in Ampere, a proposed Renault spinoff that will encapsulate the French automaker’s electric-vehicle EV and software business.

The statement did not detail the size of this stake. But a person familiar with the negotiations said Nissan is prepared to invest up to 15 percent. The exact level may be worked out later.

Semiconductor tech company Qualcomm is also expected to take a stake in that venture.

The EV spinoff will focus mainly on developing and selling full-electric vehicles that comply with strict European emissions regulations.

Nissan and its Japanese partner Mitsubishi Motors. will have access to the technology for use in their European market lineups. Nissan will continue to work separately on its own EV technologies as well, a person familiar with the discussions said.

Under the envisioned rebalancing, the companies said they will also bolster their international cooperation with new operational projects in Latin America, India and Europe. 

Those new projects will tackle market penetration, vehicles and technologies. 

The lopsided cross-shareholdings between Renault and Nissan that have long been a source of strain and frustration within Nissan. 

More equal footing could usher in a new era that some have called “Alliance 2.0.” “We are close to a mega-new era,” said one person close to the talks.

The reshuffling would be the first major overhaul since Renault saved Nissan from near bankruptcy in 1999 by taking controlling stake in the then-flailing Japanese blue chip.

Equalizing the holdings could alleviate tensions that have strained ties between the companies, especially in the wake of the arrest of former Alliance Chairman Carlos Ghosn in November 2018.

The update may also include a more transparent corporate governance accord to replace the opaque Restated Alliance Master Agreement, or RAMA, that has also been a bone of contention.

Renault and Nissan have been talking about a rebalancing since early last year. A deal had been anticipated last November, but talks bogged down over concerns that Nissan’s intellectual property could be leaked through Qualcomm to other industry competitors.

Those concerns have been hammered out, paving the way for a deal, the person familiar with the talks said.