Nissan Motor Co agreed to buy a stake of 34 percent in Mitsubishi Motors Corp, which assume in practice control of smaller rival with a bet rescue 2,200 million.
The deal is a lifeline for Mitsubishi Motors, which is mired in its third scandal in two decades, but should also represent a boost for Nissan.
The second largest automaker in Japan has struggled to make forays into Asian countries such as Thailand and the Philippines, where Mitsubishi models are popular.
Mitsubishi and Nissan already cooperate in the development and manufacture of vehicles with a partnership that began in 2011, but that agreement did not entail a cross-shareholding.
under Thursday’s agreement, both companies said Mitsubishi will help to “restore confidence”, Mitsubishi Motors Nissan will issue new shares at a discount of 5.3 percent from Wednesday’s close, bringing 237,400 million yen (2,180 million dollars).
that will give Nissan a little over a third of the group, enough for you to exercise control functions under the rules of shareholders in Japan.
the CEO of Nissan, Carlos Ghosn, said both companies will now share and jointly develop technology, and achieve “billions” in synergies by coordinating purchases, use of plants and cooperation in growth markets.
“we believe this will be a situation that can only benefit (…) we believe we can help, support and grow together better than Mitsubishi would have done it alone, “Ghosn told reporters at a joint press conference in Yokohama, south of Tokyo.
Ghosn said Nissan may nominate one-third of the board of Mitsubishi Motors, adding who believes that the automaker will also be run by an executive of Nissan.
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