Renault, Nissan Back More Share Sales in Alliance Loosening (3)

Renault SA and Nissan Motor Co. agreed to further loosen their long-term alliance, giving the struggling Japanese automaker greater financial flexibility as it seeks a turnaround under a new chief executive officer.

The companies will be able to reduce their cross-ownership to 10%, from 15% previously, Renault said Monday. The move allows Nissan to sell as much as one-third of its Renault stake, which could raise around €690 million ($746 million) at current valuations.

Renault — still Nissan’s biggest shareholder with a 36% stake — has been partially unwinding the partnership amid mounting rivalries and mutual suspicion. The Japanese automaker ...