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Nissan in talks with Mitsubishi to buy majority stake

Nissan in talks with Mitsubishi to buy majority stake
Desirazu Venkat Desirazu Venkat Thursday 12 May 2016, 14:34 PM

Nissan Motors is in talks with Mitsubishi to buy a majority stake of the controversy hit automaker. They (Nissan) are expected to invest about 1.8 billion USD and purchase a 33 per cent share in the company. This would make Nissan Mitsubishi’s largest shareholder.   

Mitsubishi had on April 20 revealed that it had been falsifying fuel economy ratings for four models that it produced including two that it manufactured for Nissan. It said that it had conducted the required tests improperly to present better consumption rates.

If Nissan goes ahead with the move, it will be a major boost for Mitsubishi in terms of capital, technical support and obviously expansion of model range. The company’s share value took a major hit the day it announced the scandal and has been struggling to come back from the same.

 

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