Nissan is selling its stake in Daimler for $1.2 billion

This follows the same move done by Renault in March.

5w ago
30.4K

The Japanese car maker Nissan has said it will be selling its roughly 1.5 percent stake in German carmaker Daimler AG through an accelerated transaction, following a similar move done by Renault in March.

Both Renault and Nissan had bought stakes in Daimler about 10 years ago as a way to strengthen their industrial partnerships.

But now, the time has come for them to sell it on, making them each billions of dollars. Nissan is expected to walk away from this deal with $1.2 billion which they aim to use to support their development of electric vehicles. Renault is expected to make around the same.

In recent weeks, Daimler's shares have been consistent with a 72.41 euros a share close on Tuesday.

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Comments (22)

  • You need to realise that both these businesses are now under the umbrella of the Stellantis empire, and that the Daimler group is both a competitor and also possibly able to accomplish an aggressive buyout of the financially struggling Stellantis Group. You might ask why? Well, it wouldn't be to keep it running, be certain of that! In one fell swoop, an entire raft of manufacturers would cease to exist and their entire factory and asset portfolio could be sold off piecemeal to pay off the redundant workforce. Even the brand names would have a value to someone, not that the plants would be there to build them in, but say a Chinese business might find Alfa Romeo a perfect fit for marketing their products outside China itself. There WILL be some truly scary closures in the next year or two all over the globe as various car manufacturers go bankrupt. Some big, household names that command serious respect could bite the dust. It's all about money and cashflow. If you build vehicles that are all, or mostly, ICE powered, then your entire factory asset portfolio is potentially valueless (beyond scrap value). You'll have signed contracts to buy millions of certain parts that can only fit onto ICE vehicles. Those contracts will need buying out to avoid buying stuff you can only assign to landfill. Your employees will need paying large redundancy packages when their person and their skills are no longer needed or necessary. Then on top of that, every new vehicle will need to be a ground-up new design, one from which you'll be able to obtain a competitive profit in a world where 'the old way' no longer cuts the mustard, and costs too much per vehicle to retrieve an adequate profit. This is already happening to smaller players. Ssangyong has recently gone bankrupt. Not a big deal here in the UK or the US, but a very big player in the asian markets. As always, follow the money. All the hype, PR, internet BS, and everything else matters nought. Unless you understand the financials in sufficient depth and nuance, you'll always be mistaken when considering how the future of the car market will develop. People keep on poo-pooing Tesla, for example. They simply have no idea how the Company works, its huge technical value, its cutting edge assets, its huge cash reserves and how highly investors are seeing it as a safe-harbour to park their billions. Where once it was constantly teetering on the edge of bankruptcy, it now is the envy of every other manufacturer of cars, trucks, robotics, AI development, computer-brain interface, and telecommunications. It's associated with the only successful and economic orbital spacecraft that are reusable, and have (at last) done the same for the new super-heavy interplanetary spacecraft. Their cars are more mobile supercomputers than simply a set of battery powered wheels. For those who point to seemingly low profits, they conveniently ignore what limits that paper profit, the reinvestment in expanding the business. New superchargers poring out of their new supercharger factory and populating every more countries across the globe with easy means to keep their Teslas rolling. Colossal new factories opening everywhere they intend to sell their products. Purchasing mineral extraction rights to obtain cleanly extracted (using new cleaner and cheaper chemistry) to make their own batteries. This list is endless. As a shareholding asset, this is an astonishingly fertile parking place for any investor. As I say, follow the money. Ignore those who state as fact, matters that are obviously wrong when you look at the clear, physical evidence.

      1 month ago
  • I honestly donโ€™t care as long as we get the new Z car in GAS GAS GAS

      1 month ago
  • Seems strange this. It makes sense in terms of finance, but surely Mercedes wonโ€™t be happy?

      1 month ago
    • Why should Mercedes not like it? Renault and Nissan had little shares in the greatest scheme of things, and most importantly the share price want really affected. The stuff that they got from Nissan out Renault was either been discontinued...

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        1 month ago
    • I think you'll find that Daimler Group will be delighted!

        1 month ago
  • This EV trash is getting outta hand. I cant wait for all these clowns to realize how useless they are.

      1 month ago
  • what is a stake?

      1 month ago
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