Nissan Motor Co has agreed to buy 34 % stake in Mitsubishi Motors Corp, hoping that by this transaction, which values $ 2.2 billion, it could actually get control over the smaller rival, which became in the focus of the scandal on the falsification of fuel consumption data in the technical documentation.
The deal gives a chance for salvation of Mitsubishi Motors, which is already faced with the third scandal in the past two decades, but can also support Nissan. The second largest automaker of Japan is actively trying to penetrate the Asian markets outside of China, in countries such as Thailand and the Philippines, where Mitsubishi models are popular.
Mitsubishi and Nissan have the experience of cooperation in the field of development and production, which dates back to 2011, but the deal announced on Thursday does not provide a reciprocal involvement in the authorized capitals.
Under the deal, which, according to the two companies should help Mitsubishi "to return the lost trust", Mitsubishi Motors will release for Nissan new shares at a discount of 5.3 % from the closing price on Wednesday, the total cost of which will amount to 237.4 billion yen ($ 2.18 billion). This will allow Nissan to acquire a little more than one third of the total assets of the group that, under Japanese law, is sufficient to control it.
Nissan CEO, Carlos Ghosn, said on Thursday that the two automakers intend to share technologies and expect to achieve a big scale synergic effect through expansion of cooperation, including the sharing of production facilities and markets.
"We believe it will be a win-win situation. I think we are able to help, to support and develop together better than if Mitsubishi was doing it by itself" – said Ghosn at a press conference in Yokohama, the south of Tokyo.
Last month, Mitsubishi admitted to falsifying the results of tests on fuel consumption and deliberately understating rates in 625 000 small cars. Amid this situation, the quotes of the company fell 45 %.
The trade of Mitsubishi shares, which on April 20 has lost about $ 3 billion of its market value, was suspended on Thursday.