Nissan commits to invest €600M in Renault's EV unit Ampere

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Nissan (OTCPK:NSANY) and Renault (OTCPK:RNSDF) have finalized agreements related to their restructured alliance, with Nissan committing to park €600M (~$664M) in Renault’s electric vehicle unit Ampere.

The new deals focus on expanding collaboration in operational projects in India, Latin America and Europe; working together on member-company projects that partners can join; as well as rebalancing of the alliance’s cross-shareholdings.

Renault (OTCPK:RNSDF) CEO Luca de Meo said the new deals provide the automaker a solid base to reactivate operations in key markets.

“The investment opportunity in Ampere complements and strengthens Nissan’s (OTCPK:NSANY) ongoing electric push in Europe and will deliver numerous synergies, including cost efficiencies, regulatory compliance, and a broader range of EV products and powertrains,” said Nissan CEO Makoto Uchida in a statement.

Ampere could be valued at up to €10B, sources told Reuters, but the exact size of its stake remained unclear.

As part of the restructured alliance announced earlier this year, Renault (OTCPK:RNSDF) will transfer 28.4% of its Nissan (OTCPK:NSANY) stake into a French trust to help put the two parties on a somewhat equal footing.

Nissan (OTCPK:NSANY) and Renault (OTCPK:RNSDF) expect to conclude the new agreements in Q4.

In other news, Nissan (OTCPK:NSANY) posted Q1 results and raised its profit guidance to reflect financial discipline and foreign exchange rates.

Shares of Nissan (OTCPK:NSANY), which ended 6.1% higher on Tuesday ahead of results, surged ~49% YTD. Sell-side analysts rate the stock Strong Buy, with an average target price of $15.99.