Infrastructure

Home page

Infrastructure

Nissan to take 34% stake in Mitsubishi Motors

12 May 2016 12:00 (UTC +04:00)

Baku - APA-Economics. Nissan has agreed to buy a 34 per cent stake in Mitsubishi Motors, as its smaller Japanese rival seeks outside capital to survive a scandal over inflated fuel economy data, The Financial Times reported.

Mitsubishi Motors on Thursday said it had agreed to sell the stake for ¥237.4bn ($2.2bn) to Nissan, which also has a global alliance with Renault, the French carmaker.

“It will not be easy to restore trust. With Nissan, we will start moving towards that goal,” said Osamu Masuko, chief executive of Mitsubishi Motors, on Thursday.

The misconduct came to light last year after Nissan, Mitsubishi’s partner in mini-cars since 2011, became aware of discrepancies in fuel-efficiency data as the two companies were developing a new slate of vehicles. In December, Nissan called for a joint investigation, which was carried out in February.

Since Mitsubishi’s admission on April 20, its shares have fallen 43 per cent. The stock remained untraded on Thursday afternoon in Tokyo after the indicative price rose by its daily limit under a flood of buy orders. Nissan shares were down 1.6 per cent.