Mitsubishi News: Rumorpile: Nissan To Buy A 30 Percent Stake Into Mitsubishi Motors - UPDATED

[William Maley]

We weren't expecting this: Nissan, the automaker who discovered the manipulation of fuel economy figures at Mitsubishi Motors, is currently in the final stages of buying a controlling stake into the company.

 

According to reports from NHK and the Nikkei Asian Review, Nissan will spend roughly 200 billion Yen (about $1.8 billion) to acquire over 30 percent interest in Mitsubishi Motors. This would make Nissan the largest shareholder in the company, surpassing Mitsubishi Heavy Industries, which currently has a 20 percent stake.

 

This news comes after Mitsubishi announced that all of its models sold in Japan since 1991 may have inflated fuel economy numbers. Since the scandal came to light, shares in Mitsubishi Motors have dropped 43 percent. Sales of Mitsubishi vehicles in Japan have also taken a turn for the worse. Mitsubishi Motors says they have enough money to cover the scandal and will not seek help from Mitsubishi group companies.

 

Why would Nissan want a controlling stake in Mitsubishi? A couple of reasons. One, Mitsubishi vehicles are very popular in markets such as Thailand and Indonesia. In fact, Asia makes 50 percent of the company's group operating profit. There is also talk about the two cooperating on electric vehicles.

 

Both companies will hold board meetings tomorrow to discuss the capital tie-up and how the shares will be distributed.

 

Source: Bloomberg, NHK, Nikkei Asian Review

 

UPDATE: Both Mitsubishi and Nissan confirmed they are in talks this morning in Japan.

 

"Nissan and Mitsubishi are discussing various matters including capital cooperation, but nothing has been decided," according to statements released by both companies.

 

Reuters confirms that the board of both companies will be holding separate meetings today to discuss this issue.

 

Source: Reuters

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[Suaviloquent]

Well, when their stock took that much of a tumble, we know that someone would come in to buy it all up.

[Drew Dowdell]

What are you up to Ghosn?

[David]

Too bad Mazda could not merge with them into one company.

[William Maley]

What are you up to Ghosn?

 

Aside from world domination?

[Robert Hall]

Not sure what is left of Mitsubishi to be of value...their car platforms are dated and redundant w/ Nissan platforms.

 

maybe their heavy trucks (is that included in this?)...though Nissan has it's own heavy truck division.   (Edit: the heavy truck company (Mitsubishi Fuso) is separate and majority owned by Daimler..so not part of this deal presumably).  

Edited May 12, 2016 by Cubical-aka-Moltar

[Drew Dowdell]

Not sure what is left of Mitsubishi to be of value...maybe their heavy trucks (is that included in this?)...though Nissan has it's own heavy truck division.  Their car platforms are dated and redundant w/ Nissan platforms.

 

Access to markets that are currently limited for Nissan.  Platform sharing.

 

I bet Mitsubishi pulls out of the US in the very near future to focus on Asian markets like Suzuki and Daihatsu did.

[William Maley]

Not sure what is left of Mitsubishi to be of value...maybe their heavy trucks (is that included in this?)...though Nissan has it's own heavy truck division.  Their car platforms are dated and redundant w/ Nissan platforms.

 

I think so, but I'll double check.

 

Edit: It looks like it is jointly owned by Diamler and Mitsubishi. 

[William Maley]

BTW, the story has been updated with a statement from both automakers.

[surreal1272]

So Nissan busted mistubishi on their fuel issues and then buys thirty percent of them. Does that not sound fishy to anyone else, i.e. stock manipulation?

Edited May 12, 2016 by surreal1272

[Cmicasa the Great]

 

Not sure what is left of Mitsubishi to be of value...maybe their heavy trucks (is that included in this?)...though Nissan has it's own heavy truck division.  Their car platforms are dated and redundant w/ Nissan platforms.

 

Access to markets that are currently limited for Nissan.  Platform sharing.

 

I bet Mitsubishi pulls out of the US in the very near future to focus on Asian markets like Suzuki and Daihatsu did.

 

 

 

 

^^^ This. The Mitsu name is all but $h! here in the U.S. with exception to the EVO lovers, but that car is done. Nissan just gained entry into a bunch of markets it has failed to penetrate even with the might of Renault/Nissan behind it. This would effectively.. if the numbers are all inclusive put Renault/Nissan in the 9-10 Million sales annual. My only question is whether Mitsu will be building cars for the revived Datsun?

[William Maley]

So Nissan busted mistubishi on their fuel issues and then buys thirty percent of them. Does that not sound fishy to anyone else, i.e. stock manipulation?

 

No. This morning at a press conference, Mitsubishi Motors chairman Osamu Masuko said a takeover was going to happen sooner or later.

Plus, Mitsubishi already had a connection with Nissan concerning kei cars in Japan and they were in talks about extending this partnership. 

[surreal1272]

 

So Nissan busted mistubishi on their fuel issues and then buys thirty percent of them. Does that not sound fishy to anyone else, i.e. stock manipulation?

 

No. This morning at a press conference, Mitsubishi Motors chairman Osamu Masuko said a takeover was going to happen sooner or later.

Plus, Mitsubishi already had a connection with Nissan concerning kei cars in Japan and they were in talks about extending this partnership. 

 

Whether they intended to sell or not is not my issue. I understand that completely. However, hat doesn't mean that Nissan wasn't looking to get a better deal. Letting the fuel controversy slip out prior to the buyout seems to lend some credence to it but maybe I'm just wearing my tinfoil hat a little too tight in regards to this.

[Suaviloquent]

They way it happened apparently is that Nissan wanted to either provide more input or take over some of the design burden of the new vehicles that Mitsu built for them under the previous partnership. They could not get the same FE numbers....and then everything happened...

[ccap41]

So Nissan busted mistubishi on their fuel issues and then buys thirty percent of them. Does that not sound fishy to anyone else, i.e. stock manipulation?

DUDE!

 

That was the first thing that I thought of too! Release a story to make their stock plummet and then buy it up when it's dirt cheap.

 

 

So Nissan busted mistubishi on their fuel issues and then buys thirty percent of them. Does that not sound fishy to anyone else, i.e. stock manipulation?

 

No. This morning at a press conference, Mitsubishi Motors chairman Osamu Masuko said a takeover was going to happen sooner or later.

Plus, Mitsubishi already had a connection with Nissan concerning kei cars in Japan and they were in talks about extending this partnership. 

 

Whether they intended to sell or not is not my issue. I understand that completely. However, hat doesn't mean that Nissan wasn't looking to get a better deal. Letting the fuel controversy slip out prior to the buyout seems to lend some credence to it but maybe I'm just wearing my tinfoil hat a little too tight in regards to this.

 

+111111111

 

I just got fitted for a new tinfoil hat this week so I know mine is fitting perfect but I just can't seem to take it off..