In April this year the French government increased its stake in Renault to 19.7%, led by the economic minister and introduced laws to increase the power of long-term investors in the company, leading to concerns that the minister was attempting a backdoor nationalisation of the carmaker.

Under the new agreement the French government’s voting rights have been capped at 17.9% – up to 20% in case of an unusually high quorum at the shareholders general meeting – except in exceptional circumstances such as takeover.

The agreement also includes contract between Renault and Nissan providing for non-interference in Nissan’s governance by the French carmaker while Nissan has agreed that it won’t increase its shares in Renault.

In a statement, the Renault’s Board of Directors said it welcomed this agreement “as an essential confidence-building step that will enable the Alliance teams to strive for a top-3 ranking among global automotive manufacturers in the years to come”.

Carlos Ghosn, chairman and CEO of the Renault-Nissan Alliance, added: “Today was an important day for the future of the Renault-Nissan Alliance. After months of discussions, I am happy to say that an agreement has been reached that builds on our heritage and strong foundations to achieve further sustainable growth and success of the two partners. While there were important short-term issues to address, it was imperative that all involved took a long view.”