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Renault sells Volvo shares to cut debt

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Renault sells Volvo shares to cut debt

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Renault shares jumped to a nine-month high after the French carmaker sold most of its stake in Swedish lorry maker Volvo for just over three billion euros.

The move will sharply reduce Renault’s debt as it invests in electric cars and emerging markets.

Renault would remain the most influential voting shareholder as it sold B-class shares, which have much less voting power.

Renault chief executive Carlos Ghosn said the share placing “confirms investor confidence in the future development of Volvo Group, which we share, as Renault will remain a major shareholder with 17.5 percent of voting rights.”

At the same time Renault announced a deal with property investment company Unibail-Rodamco to install chargers for electric cars in French supermarket car parks.