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Report: Nissan Aims to Sell Trading Unit for $1 Billion
Nissan Motor Co. hopes to sell its trading company subsidiary in a deal that could raise $1 billion for the struggling carmaker.
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Nissan Motor Co. is soliciting bids from private equity firms and other potential buyers for the carmaker’s Nissan Trading Co. subsidiary, which distributes parts and materials, in a deal that could raise $1 billion for the struggling company, sources tell Bloomberg News.
A buyer could be named by as early as next month, according to the news service. Nissan declined to comment.
Formed in 1978, Nissan Trading generated revenue of 676 billion yen ($6 billion) in the fiscal year ended March 31. Of the total, 47% was derived from materials and 37% came from vehicle components, Bloomberg says.
In July, Nissan announced a major restructuring and cost-cutting initiative after its profit plummeted 95% in its fiscal first quarter. The plan includes cutting 12,500 jobs and trimming global production capacity 10% by 2023.
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