And, it’s pretty much a done deal – Nissan and Mitsubishi Motors Corporation (MMC) have announced that they have signed a basic agreement today for Nissan to take a 34% equity stake in MMC for 237 billion yen (RM8.37 billion). It had been reported earlier today that both companies were in advanced discussions over the matter.
The transaction is subject to the signing of a definitive Alliance Agreement, expected by the end of May, and the signing of a shareholders agreement with the current Mitsubishi Group shareholders of MMC as well as the usual regulatory approvals. The deal is expected to be concluded by the end of the year.
Under the terms of the transaction, Nissan will purchase 506.6 million newly-issued MMC shares at a price of 468.52 yen per share, and the deal will see Nissan effectively becoming the largest shareholder of MMC once it is completed. The automakers expect Mitsubishi Heavy Industries, Mitsubishi Corporation and The Bank of Tokyo-Mitsubishi UFJ to maintain a significant collective ownership stake in MMC and to support the strategic alliance.
The statement issued by the automakers also stated that MMC will propose Nissan nominees as board directors in proportion to Nissan’s voting rights, as well as a Nissan nominee to become chairman of the board.
Beleaguered MMC is struggling in the wake of a deepening fuel economy scandal. Last month, the company revealed that it had been using methods not compliant with Japanese standards to test for fuel economy since 2002. The cars that brought the issue to the forefront were the Mitsubishi eK Wagon and eK Space as well as the Nissan Dayz and Dayz Roox, which MMC has been manufacturing and supplying to Nissan since June 2013.
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Mitsubishi motor corporation really in down fall right now… Nissan take the opportunity. Back to Proton case even the “NCAP scandal” still can continue take R&D from gov(Rakyat tax payers money) like nothing happen… Bolehland Ministry of pampering AP cronies !!!
Proton staffs can ‘relax’ after the bailout
that’s lots of evos..
Meanwhile proton gets 1.5bil worth of donations
The timing of this purchase is so weird. Is Nissan buying now because it is cheaper due to the scandal or what?
Its smart, buy it when the shares are at its cheapest.. Thats how u do business
Well said.
Capitalise on weakness then gain from its strength.
Unlike Proton ,
No donation – no vision & no life.
Basically the rich rob from the poor is justified. What a Onederful way of business.
Dumb John !!
What u talking about ?
No one was robbed !
Capitalise when share prices fall.
Who robbed from the poor ?
People like you always twist and turn facts and make an issue out of nothing.
Simple business game..
You do not do well and compete in the market then you are out, simple like that.
The Italy company using 1 euro to buy MV Agusta from potong is a even a smart decision!!! lol
Stupidity doesnt just limit to P1 only. If talking about MV, just see how much Mesidis is losing. Lol
What do you call it when Proton rob rakyat’s money in the name of protection? Is it justified?
lol dont show ur stupidness. MV agusta sold for 1 euro, together with its debts amounting to millions of dollars
Fadzil, the article is discussing about one company buying a majority stake in another ‘friendly alliance’. It mentions Nissan and Mitsubishi.
No mention of Proton whatsoever. Get a life. If you have a vision.
Don’t don’t chunk time.
GTR EVO. Skyline GTO. 180SX Eclipse. Silvia FTO
Rather than having Nissan sue them for supplying ‘cheating’ car, let Nissan share the cost of their downfall. Wonder what Renault position on this one, since they own Nissan.
Nissan owns part of Renault too, and now is the stronger performer of the two. So basically, Renault has to listen to Nissan and not the other way round. and btw, it’s not who owning who anymore; Renault and Nissan are in an alliance and not “parents company and son company”.
we should have just bought over Mitsubishi for that kind of money instead of dumping Rm 30b into Proton. Its a lot cheaper and a faster track into the motoring manufacturers fraternity.
Good point and coming from a layman’s point of view, one wonders what the management of Proton and Idris Jala has been doing.
Proton & Mitsu had a long term relationship and yet failed to capitalise this when the opportunity was right in front of their face.
Sigh!!!
U mean like how P1 bought MV agusta for its high performance & racing heritage yeah? The one that Mesidis is now trying to offload at a loss as well?
one is making car, another is making motorcycle.
Cant wait for GTR powered Evo.
I bet Nissan regrets doing the Navara by themselves now. hehehe… http://paultan.org/2014/06/13/nissan-mitsubishi-pickup-jv-no-more/
Why should they??
well, now they have two models competing with each other. Navara vs Triton. and it probably cost twice as much money to develop those two trucks
Now as one company they have two trucks competing with each other having spent twice the development cost (Navara vs Triton). Other companies are saving cost by collaboration (colorado and dmax, ranger and bt-50, the next mazda may be based on the Hilux)
Nismo GTR Evolution RS Nurburgring coming
Go Proton Go. Proton buy Mitsubishi. No $$$ can loan from…. imagine the technology add on.