Tokyo -Nissan reportedly will buy Mitsubishi. Nissan considering buying a controlling stake Mitsubishi being suffered scandals fuel consumption.
Nissan and Mitsubishi that when combined become Japan's second largest automaker, has been working in producing cars since 2011. But there was no stock exchange in between.
"Nissan and Mitsubishi were discussing many things, including working capital, but nothing has been decided yet," Nissan said in a statement.
The board of directors of Nissan and Mitsubishi will meet separately in the near future to discuss the purchase of shares of Mitsubishi. Nissan reportedly set up a fund of US $ 1.8 billion for a third of the shares of Mitsubishi. That means the shares owned by Nissan in Mitsubishi greater than shares owned by Nissan's alliance with Renault.
Mitsubishi is currently in need of fresh funds, while Mitsubishi fuel consumption scandal is detrimental up to US $ 3 billion. The scandal was already tarnished the brand of Mitsubishi and Mitsubishi's market share decreases.
If Nissan and Mitsubishi merger, then its sales will approach the sales of other automobile giants such as Toyota and Volkswagen.
As reported by Reuters, Nissan already teamed up with Renault, when combined with Mitsubishi, the total sales will reach about 9.3 million units.
Miitsubishi stock purchase by Nissan will be advantageous to Mitsubishi that are currently difficult to compete in the automotive industry is loaded with investment and innovation.
For Nissan, by buying shares of Mitsubishi will give them a stronger foothold in the Asian country. Moreover, Nissan is now less strong in Asia, especially in China. While Mitsubishi will also benefit from the reliability of Nissan's North American operations.
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