As the automakers revamp their decades-long alliance, Renault will reduce Nissan’s stake

Car giant Renault And Nissan They agreed on Monday to restructure the decades-old alliance in a move that saw Renault’s stake in Nissan cut from 43 percent to 15 percent.

The deal, which is still pending board approvals, will equalize the companies’ shareholdings, with the automakers now able to “freely exercise the voting rights associated with the 15% direct stock, up 15%,” the companies said.

The new structure will see Renault transfer 28.4% of Nissan shares to the French trust.

In the trust, the voting rights will be “neutral” for most of the decisions, but the economic rights (proceeds from the sale of shares and shares) will still be fully vested in Renault until such shares are sold.

Renault instructs the trustee to sell those shares “in a commercially reasonable manner” and as part of a “coordinated and orderly process”.

The automakers first signed their alliance in March 1999, expanding it to include a junior partner. Mitsubishi Motors In the year Monday’s agreement in 2016 comes after several talks on restructuring the Franco-Japanese alliance.

According to the agreement, Nissan with Ampere, Renault’s Electric Card, the two companies will start “high-value operational projects” in Latin America, India and Europe.

Renault announced in November that it had signed a non-binding framework agreement with China Jilly To establish a new company that produces hybrid powertrains and “high efficiency ICE [internal combustion engine] Power plants.”

The French giant has also entered into a long-term strategic partnership with the US chip maker Qualcomm.

Renault shares were down 1.4% in early European trading, while Nissan shares were down 0.7% in Asian trading hours overnight.