One of the leading motor companies in the world, Nissan, is looking to sell its current project turned business electric battery business to the Chinese investment firm GSR Capital. The announcement was circling around news sites earlier today upon the opening of the Asian market; both companies have not disclosed the exact amount of the acquisition.
The electric battery business was a joint venture from Nissan and the company NEC, who is a solution developer company; this signals that both parties are looking to exit the growing and saturating electric car market race that has been biting most giant automobile companies.
More on GSR and Nissan Deal
According to multiple sources said that Nissan’s and NEC’s joint project also known as the Automotive Energy Supply Corporate or AESC which was founded on late 2007; the whole agenda back then was to create and produce lithium-ion batteries for a basket of automakers and is now going to the hands of the Chinese private equity fund company GSR.
The whole AESC sales is not a big surprise for anyone who has been following Nissan’s recent debacles; the company has been reportedly active on looking for a buyer of its 51% stakes in their AESC business since last year. On the other hand, NEC has also been reportedly conducting talks and meeting with GSR prior to today’s revelation.
The Deal’s Procedure
According to a recent note from Nissan, the whole procedure will be as follows; Nissan will first take the whole control of AESC and even the whole battery electrode subsidiary from NEC Energy Devices. The deal is expected to go underway after the whole process from Nissan and NEC, and the whole acquisition is expected to finish by December of this year.
In a statement provided by Nissan’s CEO Hiroto Saikawa, “This is a win-win for AESC and Nissan,” and “It enables AESC to utilize GSR’s wide networks and proactive investment to expand its customer base and further increase its competitiveness. In turn, this will further enhance Nissan’s EV competitiveness. AESC will remain a very important partner for Nissan as we deepen our focus on designing and producing market-leading electric vehicles.”
GSR’s Capital chairman Sonny Wu noted that “We plan to further invest in R&D, expand existing production capacity in the US, UK, and Japan, and also establish new facilities in China and Europe, enabling us to better serve customers around the world,”
Rumors and Speculation
Rumors have been circulating around saying that NEC has been in talks for GSR and agreed to an amount of $135 million or 15 billion; although for Nissan’s side, they still haven’t provided any financial statement or any financial terms of the acquisition although a report last May revealed that the stake might hit at least around $ 1 billion.
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