1 min read.Updated: 04 May 2021, 10:57 PM ISTBloomberg
Nissan is offering about 16.4 million shares through a sale run by BofA Securities and Societe Generale, as per report
Renault shed its Daimler stake in March, bringing in 1.14 billion euros
Nissan Motor Co. is selling stock it owns in Daimler AG worth about 1.19 billion euros ($1.4 billion), joining its partner Renault SA in generating funds for turnaround efforts.
Nissan is offering about 16.4 million shares through a sale run by BofA Securities and Societe Generale, according to terms obtained by Bloomberg News. Renault shed its Daimler stake in March, bringing in 1.14 billion euros.
Like Renault, Nissan is trying to restore profitability and overhaul its portfolio after the 2018 arrest of their long-time leader Carlos Ghosn threw their alliance into disarray. Projects the two companies started with Daimler just over a decade ago were among the endeavors showing signs of stress before Nissan insiders orchestrated the former chairman’s downfall almost three years ago.
Several of Ghosn and former Daimler Chairman Dieter Zetsche’s projects to jointly develop and produce vehicles turned into bruising experiences. Mercedes culled the X-Class pickup that was based on the Nissan Navara due to poor sales, and customers mocked the mediocre quality of the small Citan van that shared components with Renault. The collaboration the companies planned for a factory in Aguascalientes, Mexico, also didn’t pan out as initially planned.
Ghosn and Zetsche regularly hosted joint press conferences at car shows before Japanese police arrested the former in late 2018 on suspicion of financial misconduct. Zetsche stepped down from his roles at Daimler the following year.
Representatives for Nissan and Daimler didn’t immediately comment on the share sale. Daimler still holds 9.17 million shares of Renault, according to data compiled by Bloomberg.