Nissan takes Mitsubishi for 34% about

Posted on 12-05-2016 at 10:46 pm by shjdejee – 38 Comments”

Bizarre acquisition.

Recently, we showed that Mitsubishi has 25 years of aware of the cheating. The result? A heavily declining stock price and disappointing results. Meanwhile the market value of Mitsubishi even has almost halved. Nice moment for Nissan for a number of shares to buy.

They did so, and 34% of the shares, but fewer than. Here was 1.9 billion euros are paid for and thus is Nissan is now the largest shareholder. Quite a large detail for this deal is that Nissan the sjoemelpratkijken of Mitsubishi discovered, and now shares with 50% discount should buy. Nissan discovered this via a Mitsubishi engine, that one on the home market (Japan) are used in a kei car. This could also be the reason for the acquisition; that Nissan more get a grip on this important market for small cars. CEO Carlos Ghosn of Nissan eventually want more besides than 40 percent of shares in Mitsubishi buy.

For Mitsubishi itself, this acquisition is by the way not disadvantageous to his. As compared to larger players a small R&D department, we can now make use of the resources of Nissan. Also, there was already a few years a collaboration between the two parties, and Nissan will benefit from that Mitsubishi continues to exist.

With the strategic alliance, expanding Nissan and MMC the already existing cooperation further. Both car manufacturers work, after all, already five years together. Nissan takes a share of 34 percent in MMC, for a value of 1.9 billion euros (237 billion yen), and will get 506,6 million newly issued shares of 3.77 euros (468,52 yen) per share. This price is the weighted average over the period 21 april 2016 to 11 may 2016.

This transaction is Nissan the largest shareholder of MMC. Nissan and MMC will combine their forces on several fronts, such as joint procurement, the development of voertuigplatforms and the use of plants, the exchange of technology and focus on emerging markets.

At the end of may expect MMC and Nissan a final alliantieovereenkomst to sign. Also, the current shareholders of MMC, and regulatory bodies the alliance approve. This process is expected to end this year around.