Renault aims for $10 billion valuation for its EV business

Renault SA is aiming for a roughly €10 billion ($10 billion) valuation for the electric-vehicle business the French carmaker is carving out as a standalone entity, according to a person familiar with the matter.

File photo used for representational purpose.
File photo used for representational purpose.

The company is preparing the EV and software entity for a potential initial public offering on the Euronext Paris exchange sometime next year, said the person, who asked not to be identified because the information is private and plans could still change.

The carveout of the entity, dubbed Ampere, is part of an overhaul that Chief Executive Officer Luca de Meo will present to investors next week. The split of the EV business from Renault’s traditional combustion-engine operations comes as the maker of Zoe and Clio cars seeks to navigate a difficult transition to electric vehicles as a possible recession looms in Europe. Renault will brief investors about its revamp plans, which are still being finalized, during a capital markets day on Nov. 8. A spokesperson declined to comment.

Also check these Cars

Find more Cars
Renault Kwid (HT Auto photo)
₹ 4.70 - 6.45 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Renault Kiger (HT Auto photo)
₹ 6.50 - 11.23 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Renault City K-ze (HT Auto photo)
₹ 6 - 10 Lakhs* *Expected Price
View Details
Maruti Suzuki Wagon R (HT Auto photo)
₹ 4.93 - 6.47 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Tata Tiago (HT Auto photo)
₹ 4.70 - 7.65 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Maruti Suzuki Alto K10 (HT Auto photo)
₹ 3.99 - 5.83 Lakhs* *Ex-showroom price
Add to compare
Check latest offers

Also Read : Renault bets big on electrified cars, aims 40% sales contribution. Details here )

Ampere’s carveout has been at the heart of talks between Renault and Japanese partner Nissan Motor Co. as the two companies seek to reshape a two-decade-old alliance. Nissan may invest $500 million to $750 million for a stake of about 15% in Ampere but the agreement hinges on a wider deal that would see Renault lower its own 43% stake in Nissan to about 15% over time to rebalance the alliance, people familiar with the situation have said.

Higher Value?

The talks are ongoing and valuation of Ampere has been among sticking points in the Nissan discussions, which have also hit snags over intellectual property concerns. Renault is currently worth 9 billion euros and it may be tricky for the carmaker to obtain a valuation for Ampere that’s higher than its own market capitalization.

The IPO would be subject to market conditions, the person familiar with the situation said. Recent turbulence in share prices has put a damper on new offerings.

Also Read : Reanult aims to restructure its alliance with Nissan. What does it mean )

De Meo also will be giving details next week on Renault’s legacy combustion-engine business, dubbed Horse, which also is being carved out. Renault may announce a deal with China’s Zheijiang Geely Holding Group for 50%-50% ownership of Horse until other investors make further investments, two people familiar with the talks said.

Ampere will be based in France and employ about 10,000 people. The Horse entity with Geely would be based outside of France and also have a staff of about 10,000. The French government, which owns 15% of Renault, has been briefed in detail about the plans, one person said.

The separation of the two businesses is likely to lead to “a better capital allocation and eventually to improved shareholder returns," Stifel analyst Pierre-Yves Quemener wrote in a note this month.

First Published Date: 05 Nov 2022, 18:07 PM IST
Shopping Bag Shop Now
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
1% OFF
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 98 Rs. 99
68% OFF
PUNZONE Car Body Scratch Remover - Scratch Repair Polishing Wax Kit Sponge Body Compound Cream Wax, Car Body Compound Scratch Remover
Rs. 289 Rs. 898
65% OFF
Ambrane 38W Fast Car Charger with Dual Output, Quick Charge 3.0 and Power Delivery, Type-C & USB Port, Wide Compatibility for Smart Phones (RAAP C38 A, Black)
Rs. 349 Rs. 999

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.