Renault has sold its 1.5% share in Mercedes-Benz carmaker Daimler for 1.143 billion euros (£0.98bn) as its looks to reduce debt and leverage profits.

The French car manufacturer revealed in a statement issued this morning (March 12) that it had completed the successful sale of its entire stake in Daimler AG – amounting to 16,448,378 shares – through a placement to qualified investors.

It added: “The proceeds of this sale will allow the Renault Group to accelerate the financial deleveraging of its Automotive activity.

“The industrial partnership between the Renault Group and Daimler remains unchanged and is not impacted by this financial transaction.”

Renault and Daimler’s cross-shareholding and partnership originated in 2010 under then-CEOs Carlos Ghosn and Dieter Zetsche and brought about collaboration on smart and Twingo hatchbacks.