Nissan To Buy Controlling Stake in Mitsubishi
Nissan Motor Corporation announced today that they have entered a tenative agreement with manufacturer Mitsubishi Motors Corporation (MMC) to take a controlling stake in the automaker’s operations. The deal, estimated to be worth around $2.2 billion, will give Nissan a 34 percent equity stake in Mitsubishi.
The two manufacturers have been in collaboration for several years now, and going forward, plan to share vehicle platforms, technologies, and plants and operations centers.
Carlos Ghosn, chief executive and president of Nissan, said: “This is a breakthrough transaction and a win-win for both Nissan and Mitsubishi Motors. It creates a dynamic new force in the automotive industry that will cooperate intensively, and generate sizeable synergies. We will be the largest shareholder of MMC, respecting their brand, their history and boosting their growth prospects. We will support MMC as they address their challenges and welcome them as the newest member of our enlarged Alliance family.”
His Mitsubishi counterpart, Osamu Masuko, said: “Through its long history of successful partnerships Nissan Motor has developed a deep knowledge of maximizing the benefits from alliance partnerships. This agreement will create long-term value needed for our two companies to progress towards the future. We will achieve long term value through deepening our strategic partnership including sharing resources such as development, as well as joint procurement.”