Nissan Motor Co. will pay 40.46 billion yen ($US393 million) to raise its stake in car parts maker Calsonic Kansei Corp. to 41.7% from 27.6%, the automaker told Reuters on Tuesday.
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Nissan, held 44% by Renault SA, reportedly will buy all of the 52 million new shares to be issued by Calsonic Kansei for 778 yen each, making the company a consolidated unit effective January 11.
Reuters noted that the move is in line with Nissan’s strategy of taking a controlling stake – or at least one-third – of important business partners to gain management control of those companies.
“This allows Calsonic Kansei to expand in line with our growth strategy,” a Nissan spokeswoman told the news agency. “We can expect Calsonic Kansei to be a more profitable company and contribute to our earnings.”
Calsonic Kansei, meanwhile, reportedly said Nissan’s bigger capital participation would help it meet a growing need for investment spending to stay competitive, while strengthening the two companies’ partnership.
Under a new three-year business plan, the Tokyo-based parts maker said it would establish new engineering bases in Europe and China, and manufacturing and tooling bases in China and Thailand to meet demand in those markets, Reuters said, adding it plans to invest 130 billion yen in equipment and facilities and 90 billion yen for research and development over the three-year period.
