TOKYO: Mercedes-Benz’s pension trust has sold its entire stake in Nissan Motor for 47.83 billion yen ($325 million) according to a source familiar with the transaction.
The German automaker disposed of its 3.8% holding at 341.3 yen per share, representing a 5.98% discount to Nissan’s previous closing price of 363 yen.
Nissan shares maintained their 6% losses from earlier trading following Monday’s announcement of the stake sale, heading for their worst performance since July.
This share price decline reflects growing investor skepticism about Nissan’s turnaround prospects amid tariff pressures and declining sales in key markets.
The Japanese automaker recorded a $535 million loss for the April-June quarter as it struggles in both the United States and Chinese markets.
Mercedes-Benz offered the shares within a price range of 337.5 yen to 341 yen according to a term sheet reviewed by Reuters.
Demand exceeded the number of shares available for sale, with the top ten investors receiving approximately 70% of the allocated stock.
Nissan declined to comment on the transaction while Mercedes-Benz referred to its previous statement about the sale.
A Mercedes-Benz spokesperson stated on Monday that the Nissan stake held no strategic importance and described the divestment as portfolio cleanup.
The shares had been transferred to Mercedes-Benz’s pension assets back in 2016 according to company records.
New CEO Ivan Espinosa, who assumed leadership in April, has implemented a comprehensive turnaround strategy to restore Nissan’s profitability.
His recovery plan includes reducing global production capacity from 3.5 million to 2.5 million vehicles by fiscal year 2027.
The automaker will also decrease its manufacturing sites from 17 to 10 under the restructuring program.
Espinosa acknowledged last month that Nissan remains in the early stages of recovery despite making progress on cost reduction efforts.
At 0600 GMT, Nissan shares traded at 342.5 yen, down 5.7%, while Japan’s Nikkei index declined 0.9%. – Reuters