Both automakers have signed the deal through which Nissan will pay 2.17 billion dollars to take a 34 percent stake in Mitsubishi.
As early reported, CEO Carlos Ghosn strikes again, as Nissan has official took advantage of the mileage scandal to control Mitsubishi at a discount price of 237 billion yen (2.17 billion dollars), the price paid for a 34 percent stake. Both automakers are already in a partnership on building and developing cars, but Nissan now has become the biggest shareholder in Japan’s smallest automaker. 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. “The price per share reflects the volume weighted average price over the period between April 21, 2016 and including May 11, 2016,” the company stated.
Before the mileage scandal broke, Mitsubishi shares traded in Tokyo for around 850 yen, while on 11 May they closed at 495 yen. The deal is to be concluded by the end of the year and “MMC and Nissan expect Mitsubishi Heavy Industries, Mitsubishi Corporation and The Bank of Tokyo – Mitsubishi UFJ to maintain a significant collective ownership stake in Mitsubishi Motors, and to support the strategic alliance.”
“This is a breakthrough transaction and a win-win for both Nissan and Mitsubishi Motors. It creates a dynamic new force in the automotive industry that will cooperate intensively, and generate sizeable synergies. We will be the largest shareholder of MMC, respecting their brand, their history and boosting their growth prospects. We will support MMC as they address their challenges and welcome them as the newest member of our enlarged Alliance family,” Carlos Ghosn said in a statement.