Nissan (TYO:7201) announced Wednesday that the Japanese automaker will invest up to $663 million in Renault’s (EPA:RENA) new electric vehicle unit, Ampere. The decision marks the finalization of months of contentious negotiations.
The investment in Ampere is consistent with Nissan being a strategic investor and securing a board seat on the new company, Nissan said.
The deal is likely to be seen as a positive. Talks between the two automakers lasted months longer than expected, due in part to Nissan's concern about keeping its intellectual property safe in any future collaborations.
Reports say that Ampere's valuation may reach as high as €10 billion (€1 = $1.1066). Back in February, Nissan hinted at investing no more than 15% in Ampere, but how much of the company it will actually end up owning is still unclear.
U.S. chipmaker, Qualcomm (NASDAQ:QCOM) has already announced plans to invest in Ampere. Meanwhile, Nissan and Renault’s junior partner, Mitsubishi Motors (TYO:7211), has stated that they would like to decide about any potential investment ahead of Ampere's initial public offering, which could take place in the first half of 2024.