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Nissan buys controlling 34 percent of Mitsubishi Motors for $2.2 billion

  • Region:


  • Sector:

    Automobiles & Components

  • Deal Size:

    $2.2 billion

  • Buy Side Company:

    Nissan Motor Co
  • Sell Side Company:

    Mitsubishi Motors Corporation
  • Target Company:

Nissan Motor Co has agreed to take a 34 percent stake in Mitsubishi Motors Corp, taking de facto control with a $2.2 billion bet that bails out its smaller, scandal-hit rival. The deal is a lifeline for Mitsubishi Motors, which is mired in its third scandal in two decades, but should also be a boost for Nissan. Japan's number two car maker has struggled to make inroads into Asia outside China, in countries like Thailand and the Philippines, where Mitsubishi's models are popular. Mitsubishi and Nissan already cooperate on development and manufacturing with a partnership dating back to 2011, but that deal does not currently involve any cross-shareholding. That will hand Nissan just over a third of the group - enough to wield control, under Japanese shareholding rules.


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