PARIS (Reuters) – Renault on Monday abandoned plans to list its Ampere electric vehicle business on the stock exchange because of weak stock market conditions.
In September, Luca de Meo, executive president of Groupe Renault and Ampere, said that the IPO (acronym in English for initial public offering) could be worth up to 10 billion euros.
The move comes as demand for electric vehicles in Europe weakens and the region’s carmakers face stiff competition from Chinese rivals.
‘Today we made a pragmatic decision. We are all focused on executing our strategy and building on our track record to create value for all our shareholders’, said the CEO.
In a statement, Groupe Renault said it will continue to finance Ampere’s development until it reaches ‘break-even’ in 2025.
In 2022, the company had announced its intention to proceed with an IPO of Ampere in the first half of 2024, but had already said at the end of 2023 that it would not go ahead if the valuation was too low.
(Reportagem de Gilles Guillaume, Charlotte Van Campenhout)