AUTO INDUSTRY NEWS

Report: Nissan may sell Calsonic stake to fund Mitsubishi buy

Report: Nissan may sell Calsonic stake to fund Mitsubishi buy image

Text: Eric Tipan / Photos: Nissan | posted May 25, 2016 10:26

Japanese automaker to raise funds for acquisition and EV plans

Nissan Motor Company Ltd. has been making bold moves as of late and that includes announcing the purchase of 34-percent of Mitsubishi Motors Corporation and also mulling over plans to invest heavily in electronic vehicle technology and artificial intelligence.

To make all these possible, Nissan has to raise a considerable amount of funds and they’re considering selling 41-percent of its stocks in auto parts maker Calsonic Kansei Corporation.

Reports indicate that there is interest coming from various investment funds in the United States and Europe along with major foreign autoparts makers as well.

41-percent of Calsonic Kansei Corporation, which manufactures heat exchangers, mufflers and air conditioners, is estimated to be worth 100 billion yen or US$ 913 million.

The purchase of 34-percent of Mitsubishi Motors Corporation will cost Nissan roughly 237.3 billion yen or US$ 2.2 billion

The sale looks beneficial for both companies as Nissan seeks to invest in research and development of electric vehicles and artificial technology while Calsonic will want to align with other manufacturers and auto parts makers especially in emerging markets.

Nissan plans to seek for first round bids for Calsonic Kansei Corporation shares by next month.

Source: Nikkei Asian Review