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16.11.2020

Nissan explores sale of a 34% stake in Mitsubishi Motors

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The company could sell its stake to a Mitsubishi group company such as Mitsubishi Corp

Stocks impacted: Nissan (7201), Mitsubishi Motors (7211)

In a move that would reshape a three-way alliance that includes France's Renault, Nissan is looking to sell some or all its 34% stake in Mitsubishi Motors. Nissan could sell its stake to a Mitsubishi group company such as Mitsubishi Corp, which already owns a fifth of Mitsubishi Motors. Finding another purchaser or turning to the open market also are options. As a reminder, last week, Nissan forecast a net loss of $5.8 billion for the fiscal year through March, citing an improvement in sales and the implementation of cost-cutting measures. At the same time, the firm cut its operating loss forecast for the year to March by 28%, helped by a rebound in demand, especially in China. Meanwhile, Mitsubishi Motors expects to post an operating loss of 140 billion yen for the business year. On Monday, Nissan stocks rose nearly 5.5% while Mitsubishi Motors edged 2.5% higher.

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