Nissan Looks into 34% Stake Sale in Mitsubishi Motors
Nissan is considering selling some or all of its 34% stake in Mitsubishi Motors, unidentified sources told Bloomberg Monday.
Nissan, struggling from the effects of the pandemic on its profits, could sell its stake to a Mitsubishi group company such as Mitsubishi Corp, which already owns 1/5 of Mitsubishi Motors, Bloomberg said. This structural change would, of course, alter the alliance of Nissan, Renault and Mitsubishi.
Carlos Ghosn, former chairman of the alliance, had wanted a full merger of Renault and Nissan, but the companies decided to fix the troubled three-way partnership. The pandemic has, however, made this a whole lot more complex.
Nissan (43% owned by Renault), cut its operating loss forecast for the year to March by 28%, pushed forward by a rebound in Chinese demand. Meanwhile, Mitsubishi Motors expects to post an operating loss of 140 billion yen for the business year. Both leading automakers are cutting production and costs in a struggle to return to profitability.
Nissan shares rose 5% on the structure change news, while Mitsubishi Motors was seen up 3%.
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