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Four companies to stay as stakeholders in Mitsubishi

Staff Writer | September 12, 2016
Nissan Motor and three companies in the Mitsubishi group have agreed to hold equity stakes totaling no less than 51% in troubled automaker Mitsubishi Motors for the next decade.
Auto industry   Nissan, Mitsubishi, Mitsubishi HI and Bank of Tokyo-Mitsubishi UFJ
Nissan is spending 237.3 billion yen ($2.3 billion) on a 34% stake in a deal set to close as early as October, making the company the top Mitsubishi Motors shareholder pending approval from regulators.

Trading house Mitsubishi, Mitsubishi Heavy Industries and Bank of Tokyo-Mitsubishi UFJ will maintain at least a 17% stake. The four companies in principle will own those shares for 10 years, according to the shareholders agreement signed September 2.

In May, Nissan and Mitsubishi Motors shook hands on a basic agreement concerning an operational and capital tie-up. That deal would have resulted in Nissan holding Mitsubishi Motors shares for three years, but the time frame is being extended to help create a stable collaborative structure.

The three Mitsubishi group companies presently own a 34% stake in Mitsubishi Motors, including shares held indirectly.

Mitsubishi Motors is due to issue new shares to Nissan, reducing the stake held by the three sister companies. The trio will have priority purchasing rights if Mitsubishi Motors shares are offloaded.