Nissan keen to sell trading unit in bid to cut cost

TOKYO: Nissan Motor Co is seeking to sell a subsidiary that distributes vehicle parts and materials in a deal that may be valued at about US$1 billion (RM4.18 billion), as the Japanese carmaker seeks to slim down, said sources.

The company has invited private equity and trading firms to bid for 100 per cent of Nissan Trading Co, said the people.

The buyer may be selected by as early as next month, said the people. The target valuation includes assumed debt, they said.

A sale of the unit, which generated revenue of 676.1 billion yen (RM25.1 billion) in the fiscal year ended March, would help Nissan free up cash to help turn around its broader business that’s been hurt by slumping United States sales, ageing vehicle models and an out-of-sync product cycle.

The carmaker stepped up restructuring measures in July, which also included 12,500 job cuts, after its operating profit hit a decade low.

The sale process is ongoing, and no agreements have been reached, said the people.

Earlier this week, Hiroto Saikawa stepped down as Nissan’s chief executive officer after the board asked him to resign, with chief operating officer Yasuhiro Yamauchi taking over until a permanent replacement is appointed by the end of next month.

Nissan Trading, established in 1978, does business in South Korea, Mexico, India, the United Kingdom, China and the US, with 37 per cent of revenue coming from vehicle components and 47 per cent from materials. Nissan shares pared a 1.1 per cent fall to close at 713.9 yen, here, down 0.4 per cent.