Renault is aims a 10-billion dollars valuation for the electric vehicle business in Europe, as the company is carving out as a standalone entity. Renault is planning to launch a software and electric vehicle entity for a potential initial public offering (IPO) on the Euronext Paris exchange in 2023, said the person familiar with the matter.
The carve out of the entity, known as Ampere, is part of an overhaul that Luca de Meo, chief executive of Renault, will present to investors next week. This separation of Renault’s electric vehicle business from its traditional combustion-engine operations comes as the company seeks to navigate a tough transition to EVs as recession looms in Europe.
The Ampere has been at the centre of talks between Renault and its Japanese partner Nissan Motor Co. as both companies seek to redesign their alliance. Nissan Motor Co. might invest 500 million dollars to 750 million dollars for a stake of around 15 percent in Ampere. But the agreement articulates a wider deal that will see Renault reduce its stake in Nissan from 43 percent to around 15 percent to rebalance the alliance between the companies.
The talks are currently ongoing, and the valuation of Ampere has been among the main points to be discussed, which has also affected snags over concerns related to intellectual property. Currently, Renault is worth 9 billion euros, and it might be tricky for the company to get a valuation for Ampere, which is higher than Renault’s own market capitalization.
Ampere will be based in France, and it will employ around 10,000 people. The government of France, which owns 15 percent of Renault, has been briefed in detail regarding the plans of the company.
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