Nis­san agrees to Mit­subishi stake deal

China Daily (USA) - - BUSINESS - By BLOOMBERG

Nis­sanMo­tor Co com­pleted its ac­qui­si­tion of a $2.3 bil­lion stake in Mit­subishi Mo­tors Corp, clear­ing the way for Car­los Ghosn to take over as chair­man and em­bark on a bid to turn around a third ma­jor au­tomaker.

Mit­subishi Mo­tors said Nis­san paid 468.52 yen ($4.54) per share for about 34 per­cent of its out­stand­ing stock. Ghosn will be­come chair­man ef­fec­tive on Dec 14, putting him at the helm of Mit­subishi Mo­tors, Nis­san and its al­liance part­ner Re­nault SA.

Nis­san is com­ing to Mit­subishi Mo­tors’ res­cue fol­low­ing its ad­mis­sions of im­prop­erly mea­sur­ing fuel econ­omy and ma­nip­u­lat­ing test data.

A Re­nault-Nis­san-Mit­subishi al­liance cre­ates the world’s fourth-largest auto group, after Toy­ota Mo­tor Corp, Volk­swa­gen AG and Gen­er­alMo­tors Co. An in­dus­try­wide push to­ward elec­tri­fi­ca­tion and au­tonomoustech­nol­ogy is lead­ing smaller car­mak­ers to align with big­ger ri­vals to share re­sources and save costs, ex­em­pli­fied by Suzuki Mo­tor Corp’s talks to form an al­liance with Toy­ota.

Mit­subishi Mo­tors Chair­man and Pres­i­dent Osamu Ma­suko will stay on as pres­i­dent of the com­pany. An al­liance with Nis­san will cre­ate 25 bil­lion yen in syn­er­gies for the 2017 fis­cal year, he said.

Nis­san ex­pects com­mon plat­forms and joint pur­chas­ing will yield sav­ings equal to about 20 per­cent of its in­vest­ment. The twocom­pa­nies have high­lighted fi­nan­cial ser­vices, pickup trucks, and plug-in hy­brid and elec­tric cars among ar­eas they can com­ple­ment each other.

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