The French government has been buying shares in French carmaker Renault SA (RENA.PA) to increase its stake to up to 19.73 percent with the aim of blocking a resolution at the next annual general meeting that could reduce its control over the company.
France agreed to buy up to 14 million Renault shares, or 4.73 percent of the group, via a broker, which has already bought 9.56 million shares and will buy the rest at a capped price, the finance ministry said in a statement on Wednesday.
The value of the shares range between 814 million euros and 1.232 billion euros ($1.33 billion), it said, adding that a put option had been agreed for six months.
"This deal shows the State's intention to use all the arms at the disposal of investors today to promote a progressive, long-term kind of capitalism that supports workers and helps companies grow," Economy Minister Emmanuel Macron said in the statement.
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