French carmaker Renault is aiming for a valuation of around €10 billion or around US$10 billion for the electric vehicle (EV) business unit that Renault will turn into an independent entity.
Reporting from Bloomberg, Renault is preparing an IPO for its electric vehicle unit next year. However, that plan is still subject to change.
The split of the business unit is part of an overhaul that Renault Chief Executive Luca de Meo will present to investors next week. The separation of the EV business from Renault’s conventional car business comes as automakers Zoe and Clio seek a difficult transition to electric vehicles as a possible recession looms in Europe.
The split of the business unit has been at the heart of negotiations between Renault and Japanese partner Nissan Motor Co, as the two companies seek to re-form a two-decade-old alliance.
Nissan could invest around US$ 500 million to US$ 750 million for a 15 percent stake in Renault’s electric vehicle business unit.
Negotiations are ongoing, and the valuation of Renault’s electric vehicle business unit is a key point in discussions with Nissan, which also touch on intellectual property issues.
Mitsubishi Motors says no decision yet on investing in Renault’s new EV spinoff
