Renault Reports Lower Impact Due to Nissan Cancelling Shares

Summary

  • Renault reports a significant decrease in projected losses compared to the earlier 1.5 billion euro estimate announced Tuesday.
  • This reduction is attributed to Nissan’s decision to cancel all the acquired shares.
  • Renault confirms that the capital loss will not impact the net income basis for the dividend payout.
  • Current exchange rate stands at $1 equivalent to 0.9276 euros.

Updated Financial Projections

Contrary to the earlier estimate of “up to 1.5 billion euro” released on Tuesday, the actual anticipated losses stand much lower according to Renault. This reduction in impact has been made possible due to Nissan terminating all the shares they previously acquired.

Dividend Payout

Furthermore, Renault assures shareholders that the calculation base for the dividend payout will exclude this capital loss. This strategic financial decision aims at minimizing the loss impact on shareholders, maintaining a healthy dividend payout.

The ongoing exchange rate for euros against the dollar is $1 equivalent to 0.9276 euros, providing a context for anticipated forex movements.

Considering the present financial scenario and Renault’s latest financial decision, it can impact forex trading, particularly concerning the shares of both Renault and Nissan. However, the actual impact can vary depending on the broader market conditions.

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