Nissan shares rise after overhaul of Renault alliance

"The normalisation of the capital relationship will raise the amount of freedom Nissan has in terms of management, making it easier to adopt a strategy that focuses on the United States, China and emerging markets," Masayuki Kubota, chief strategist at Rakuten Securities,It will see Renault put around 28% of the Japanese automaker in a French trust.

The restructuring addresses historical concerns about shareholder governance, given that Nissan was unable to exercise its voting rights, Nomura analyst Masataka Kunugimoto said in a note. "A relationship where both companies have equal voting rights of 15% in each other should substantially reduce concerns about governance," Kunugimoto said. "Overall, we think this announcement is likely to lead to a reappraisal of Nissan's shares."

Nomura has a "buy" rating on the stock, and a target price of 750 yen, well above Tuesday's high of 468.1 yen. Over the past three years, Nissan's shares have fallen by around 23%, well behind a 24% gain by industry leader Toyota Motor CorpReporting by David Dolan, Daniel Leussink and Rae Wee in Singapore; Editing by Jamie Freed

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