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JAPAN    
Nissan to acquire 34% of troubled Mitsubishi Motors
Published: Wed, 18th May 2016 17:06:18 GMT
 

Mitsubishi stand Geneva Motor Show 2016 ex concept

Japanís financially healthy Nissan, after first catching Renaultís tossed lifeline back in 1999, now hopes to do the same for its troubled Mitsubishi compatriot. Late last week Nissan said it will spend Yen237bn (Ä1.92bn) to buy 506.6 million newly issued shares in Mitsubishi Motors adding up to a controlling 34 per cent stake. When the deal is fully ratified later this month, Nissan is given licence to nominate both the chairman of Mitsubishi Motors and a third of its directors

Almost coinciding with the publication of its still healthy looking 2015 fiscal year financial figures, showing an improved operating profit of Ä6.4bn for the year ending March 31 this year, accompanied by a notable uplift in its operating margin to 6.5 per cent and 6.3 per cent for the fourth quarter, Nissan also gave notice of its intention to ride to the rescue of scandal hit Mitsubishi-Motors. 

With strong echoes of the late 1990s, when both Nissan and Mitsubishi-Motors were struggling to keep their heads above water, today Nissan stands out as a pillar of strength, while Mitsubishi, in contrast, is once again in trouble. 

This time Mitsubishi finds itself in hot water after overstating the fuel efficiency on some of its domestically sold cars. 

Some of these mini-cars (K-Cars) were sold with a Nissan badge in Japan
...more


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