Nis­san com­pletes Sh232 bil­lion takeover of Mit­subishi, re­tains em­bat­tled CEO

The Star (Kenya) - - News -

Nis­san Mo­tor Co Ltd yes­ter­day said it had com­pleted a deal to take a con­trol­ling stake in Mit­subishi Mo­tors Corp. It in­di­cated it will re­tain the em­bat­tled au­tomaker’s chief ex­ec­u­tive to en­sure its re­cov­ery from a mileage cheat­ing scan­dal.

Ja­pan’s num­ber two au­tomaker has agreed to make a 237 bil­lion yen ($2.29 bil­lion or about Sh231.99 bil­lion) in­vest­ment to ac­quire a 34 per cent stake in Mit­subishi Mo­tors, mak­ing it the sin­gle largest share­holder in its smaller peer. The deal will make Mit­subishi Mo­tors a mem­ber of an al­liance be­tween Nis­san and French au­tomaker Re­nault.The two com­pa­nies said the part­ner­ship will gen­er­ate sig­nif­i­cant syn­er­gies in pur­chas­ing and plant util­i­sa­tion.

The firms said they will jointly de­velop au­to­mated driv­ing tech­nolo­gies and plug-in hy­brid ve­hi­cles. Pend­ing share­holder ap­proval, Car­los Ghosn, who serves as chair­man and CEO of Nis­san and Re­nault, will lead the board of Mit­subishi Mo­tors. Osamu Ma­suko will re­main the com­pany’s pres­i­dent and CEO de­spite calls by some share­hold­ers for him to re­sign to take re­spon­si­bil­ity for fal­si­fy­ing the mileage on its ve­hi­cles.

Ghosn said keep­ing Ma­suko on was an “im­por­tant con­di­tion” in pro­ceed­ing with the part­ner­ship, adding that all man­age­ment de­ci­sions will be made by Ma­suko. “One of the rea­sons that I so much wanted Mr Ma­suko to stay as CEO was be­cause I wanted the peo­ple at Mit­subishi to know that Mit­subishi will re­main Mit­subishi. Mit­subishi will not be­come a sub­sidiary of Nis­san,” he told a joint brief­ing. “This sends a strong mes­sage that it’s not Nis­san that’s go­ing to trans­form Mit­subishi, it’s Mit­subishi that’s go­ing to trans­form Mit­subishi.”

Pool­ing re­sources and elim­i­nat­ing du­pli­cate op­er­a­tions will re­sult in es­ti­mated an­nual cost sav­ings of 25 bil­lion yen for Mit­subishi.

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