Mitsubishi Motors on Thursday said it would sell a 22% stake in Mitsubishi Fuso Truck & Bus to DaimlerChrysler AG for 52 billion yen ($US489.4 million), Reuters reported.
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The report noted that the sale, aimed at shoring up the restructuring auto maker’s balance sheet after it was badly hurt by problems at a US finance unit, follows news of a possible capital increase for Mitsubishi by DaimlerChrysler and other big shareholders.
Reuters said Mitsubishi Motors and its German-US parent DaimlerChrysler had been negotiating the Fuso deal since late last month.
Mitsubishi reportedly said it was considering various options for its remaining stake in Fuso, but declined comment on the possibility it would sell the rest to Mitsubishi group firms, as has been reported.
Major shareholders Mitsubishi Heavy Industries Ltd and trading house Mitsubishi Corp also declined comment, Reuters said.
According to the report, Mitsubishi Motors’ stake in the truck maker will be cut to 20% from 42% while DaimlerChrysler, which owns 37% of Mitsubishi Motors and is the world’s biggest truck maker, is lifting its stake in unlisted Fuso to 65%.
Fuso, one of the stronger of Japan’s four truck makers, was spun off from Mitsubishi Motors a year ago, Reuters noted.
DaimlerChrysler reportedly said the deal would lead to greater integration within its truck business, which is starting to reap the rewards of deep restructuring in the last three years.
Adam Collins, an auto analyst at Commerzbank in London, told Reuters he was broadly supportive of the move.
“I think the area where DaimlerChrysler is weakest in trucks is Asia, and Fuso is a good business. It is run separately from Mitsubishi’s car business so there is no contamination from the car side,” he reportedly said.
DaimlerChrysler is focusing on Asia, the world’s fastest-growing truck market, for its commercial vehicles business but has hit problems in trying to finalise an agreement with South Korea’s Hyundai Motor, Reuters noted.
“Today’s decision is the logical next step in our strategy to focus on passenger car operations,” Mitsubishi Motors chief executive Rolf Eckrodt said in a statement cited by the news agency. “The proceeds will provide extra traction for MMC’s ability to invest in new model development,” he reportedly added.
