Renault sells part of its ownership in Nissan

Renault would seek to sell at least a quarter of its stake in Nissan, and the Chinese may enter the fray.

According to Bloomberg, which cited well-informed individuals, French automaker Renault is considering selling a portion of its proprietary IP to Nissan in order to raise the several billion dollars required to transition to electric vehicle production.

Renault's plans to split its business into electric and SUS-powered vehicles remain on track in order to catch up with rivals such as Tesla and Volkswagen. The French automaker declared on Friday that all possibilities for splitting the electric vehicle industry are on the table.

"All initiatives will be subject to approval by Renault-Nissan partners," Finance Minister Thierry Python stated.

According to sources who asked not to be identified because the discussion is private, Nissan may be willing to buy a portion of the Japanese manufacturer owned by Renault.

They noted that Renault could explore for other purchasers for its 43 percent interest in Nissan and that Chinese Geely has been touted as a possible buyer.

Renault and Nissan both declined to comment on the news.

Following the announcement, Renault's stock rose as much as 8.3 percent on the Paris Stock Exchange on Friday, while Nissan's stock fell 5% on Monday.

Renault will be "walking a thin wire" if it reduces its stake in Nissan, which is worth 7.1 billion USD, weighing the danger of the alliance falling apart after 23 years.

The flawed joint ownership arrangement, in which Nissan owns only 15% of Renault and has no voting rights, has been a source of dispute among Nissan executives for years.

Some speculate that Renault might sell a larger stake in Nissan while keeping only 15% of the partner company's worth, netting them 4.65 billion USD.

The two businesses' silent feud intensified the crisis involving former Renault-Nissan alliance chairman Carlos Gon.

Analysts believe that the sale will not only assist finance big structural changes in the French company, as indicated by CEO Luca de Meo in February of this year but will also soothe long-standing tensions between the two partner companies.