Anton Andres / Nissan Press | October 10, 2016 07:16
A step forward towards completing Nissan-Mitsubishi deal
Five months after Nissan bought a significant portion of Mitsubishi, the European Commission (EC) recognizes the deal between the two Japanese automakers. The Commission's blessing is especially important for Nissan since they are ultimately controlled by French manufacturer, Renault.
“The Commission concluded that the proposed acquisition would raise no competition concerns, because the overlaps between the companies' activities were limited and a number of strong players would remain active in the markets concerned after the merger,” read the official statement from the EC.
The alliance sees Nissan and Mitsubishi Motors cooperating in areas including purchasing, common vehicle platforms, technology-sharing, joint plant utilization and growth markets. Nissan paid $2.2 billion to acquire a 34% stake in Mitsubishi Motors Corporation, effectively becoming the largest shareholder. Mitsubishi was recently rocked by a fuel economy scandal wherein they admitted that they have been manipulatin data as far back as 1991. Mitsubishi has since made a public apology and it has been reported that MMC CEO Osamu Masuko has resigned from his post.
MMC will propose executives from Nissan as nominees for board directors in proportion to Nissan’s voting rights, including a Nissan nominee to become Chairman of the Board. Being the largest stakeholder, Nissan also has rights to management decisions on top of technology-sharing. The deal is expected to be completed by the end of the year.