Tokyo – Aug 26 :
Shares in Nissan Motor Co. plunged over 6% on Tuesday after Mercedes-Benz announced plans to divest its 3.8% stake in the struggling Japanese automaker. The move, valued at approximately $346 million, comes as part of a broader portfolio cleanup by Mercedes-Benz’s pension trust, which had held the Nissan shares since 2016.
The German carmaker is Nissan’s second-largest shareholder after Renault, which holds a 35.7% stake, according to LSEG data. Analysts say the sale underscores waning confidence in Nissan’s turnaround strategy, which has been hampered by U.S. tariffs, sluggish sales, and fierce competition in the EV market, particularly from Chinese rivals.
Nissan’s stock fell as much as 6.7% in early trading before settling at a 6% loss, marking one of its steepest single-day declines this year. The company has already announced plans to slash 11,000 jobs, shut down seven plants, and reduce global production capacity as part of a sweeping restructuring effort.
CEO Ivan Espinosa said the company is focused on stabilizing operations and regaining profitability. However, investor sentiment remains cautious, with Nissan shares down 29% year-to-date.
(source cnbc.com)
—Agencies
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