France to spend €1.23bn to raise its stake in Renault

The French state will spend as much as €1.23bn to raise its stake in Renault and maintain its influence in the carmaker.

The French treasury bought 9.6m Renault shares on the market yesterday and has given a bank a mandate to acquire 4.4m more, the industry ministry said. The move will cost between €814m and €1.23bn, and safeguard extra voting rights the government and other long-term shareholders are due to receive.

The French government wants to ensure it wins a shareholder vote on April 30 that will determine whether any investor who owns the stock for more than two years can get double voting rights. The state backs the shift, allowed in French law since 2014, which will give it and other long-term shareholders more power. France is the biggest owner of stock in Renault, followed by Japanese auto-manufacturing partner Nissan Motor Co.