34% of the shares will be bought by Nissan in the automotive giant Mitsubishi Motors. We will tell you about the details of the transaction, its cost and consequences for manufacturers.
Today, April 12, 2016, Nissan Motor hosted a press conference with Mitsubishi Motors to officially announce that they are buying 34% of the company in giant Mitsubishi. As a result, the first giant will become the largest shareholder in Mitsubishi.
Such a historic deal will be strategically decisive for the two auto giant manufacturers over the years. According to the information announced at a press conference, the deal will amount to 237 billion yen or $ 2.2 billion. For the first time, information about such a deal surfaced five years ago. Years ago, the two companies began a partnership with a partial exchange of the latest technologies and developments in the automotive industry. For shares, this figure will be 506.6 million newly issued shares at a price of 468.2 yen per share. On May 12, Mitsubishi rose 16%, while Nissan Motor fell 1.4%. Earlier there was information that due to the Mitsubishi scandal regarding the fuel consumption of cars, the share price fell.
Nissan and Mitsubishi will work together to maximize the value of money invested and thereby increase the number of developments. This includes the strategy of selling new cars, developing new platforms, new technologies, expanding the sales market and, of course, the recycling process of old cars. In other words, companies come together to gather connections and resources to improve the status of both companies.
Carlos Ghosn president of Nissan that such a deal will be effective for both Mitsubishi and Nissan Motor. Meanwhile, he also stated that Mitsubishi's entire history and respect will remain the same given its long history in the automotive market.
