Nissan may conclude the first bidding round to sell its 41% controlling stake in Japanese component supplier Calsonic Kansei by 10 June, reports Reuters. According to news report, suppliers such as Faurecia, Valeo, Tenneco, and Modine may participate in the bidding rounds. Furthermore, citing unnamed sources the news report added that Nissan is also selling its exhaust and climate control units in a separate auction, with bids due on the same date. Nissan has declined to comment on the issue.
Significance: According to media reports, Nissan expects to raise over JPY100 billion (USD913 million) from the sale. The decision to sell its Calsonic stake comes as the automaker plans to bolster its research and development (R&D) activities for electric vehicles (EVs) and plug-in hybrid vehicles. It has so far refrained from making any comments on the development. The timing of the stake sale coincides with Nissan's plans to acquire a 34% controlling stake worth USD2.2 billion in Mitsubishi, which is currently battling a fuel-efficiency scandal in Japan. Both the automakers signed a signed a definitive alliance agreement on their capital and business tie-up plans on 25 May. Calsonic Kansei is one of the key suppliers of climate controls and exhaust systems in Japan. The company specialises in module-based products, such as products used in the cockpit, front-end, and exhaust systems. Nissan is the company's biggest customer and accounts for around 80% of its total revenues. Nissan raised its stake in the component supplier in 2004 from 27.6% by purchasing 52 million shares valued at JPY40.46 billion.
