Nissan Seek to sell its trading unit for $1 Billion says Saitama Rakuten International
Saitama Rakuten International say Japanese automaker is selling its trading unit due to restructuring measures
Saitama Rakuten International reports that Japanese multinational automobile manufacturer, Nissan Motor Co. are venturing out to sell a wholly-owned subsidiary that currently produces vehicle parts and materials.
Saitama Rakuten International analysts have said that the deal could be worth up to $1 billion U.S dollars. The Japanese automaker is selling its trading unit due to restructuring measures.
“The deal would also include assumed debt that will be carried over, hence the more substantial valuation.” highlighted Nicholas Cooke, Head of Corporate Trading at Saitama Rakuten International.
The company has gathered private equity and investment trading firms to start bidding for 100% of the subsidiary Nissan Trading Co. The notification of a new buyer could be announced as early as October this year.
The Nissan subsidiary generated over 670 billion Yen, ($6 billion U.S Dollars) in its fiscal year that ended in March. The sale would assist Nissan to free up cash that in-turn could help regenerate its broader businesses.
There have been falling sales over in the United States, and ongoing remarks to its out of date vehicle models. With decisive measures taken, the automaker took action on its restructuring process back in July, which included over twelve thousand job cuts after their profits hit decade lows.
“We saw earlier this week that Mr Saikawa stepped down as Nissan’s chief executive officer after the board asked him to resign, Mr Yamauchi is taking over until a permanent replacement is found.” commented Matthew Barrett, Director of Corporate Equities at Saitama Rakuten International.
Researchers from Saitama Rakuten International noted that Nissan Trading Co., which was established in 1978 conducts its main business with South Korea, Mexico, India and China. The company produces 37% of its revenue from the sale of vehicle components and around 47% from materials.