French carmaker Renault and Japanese partner Nissan are in the final stages of signing an agreement to reshape their two-decade-old alliance. Renault would eventually reduce its stake in Nissan. Insiders report this to the Bloomberg news agency.

The new pact would allow the French carmaker to proceed with a planned spin-off of its electric car business. Both parties will sign a non-binding agreement after the details were primarily completed late last week.

While an event is scheduled for November 15 in Tokyo to announce the deal, talks are ongoing, and a final deal could be delayed. Renault and Nissan declined to comment on the negotiations themselves. Directors of Mitsubishi Motors, the partnership’s junior partner, are also reportedly expected to attend the meeting in Tokyo.

Under the plan, Renault will reduce its equity stake in Nissan over time to 15 percent from its current level of 43 percent. In return, Nissan will invest $500 million to $750 million in an approximately 15 percent stake in Renault’s electric car business. In addition, Renault CEO Luca de Meo wants to split off the division that makes electric vehicles from the branch that focuses on cars with petrol and diesel engines.

With the change in ownership, which has been a source of friction between the two sides for years, the French would meet the wishes of their Japanese partner. Because although Renault has a large stake in Nissan, the Japanese car manufacturer sells more cars than its French shareholder. In 2021 Nissan managed to sell 4 million vehicles, while Renault sold 2.7 million.