Categories Earnings

Nissan cancels sale of battery unit to GSR Capital

Nissan Motor has called off the deal to sell its battery-manufacturing unit, Automotive Energy Supply Corporation, to Chinese firm GSR Capital for $1 billion. The transaction, which faced numerous delays and was extended three times, was canceled after the investment firm failed to provide the funds by the June 29 deadline. The sale included AESC’s operations in the US, Japan and England.

Nissan wanted to exit the battery production business after it decided that buying batteries from external suppliers was a better choice due to the availability of several options in terms of technology and pricing. The automaker is still looking to sell the division but analysts have expressed doubts over the possibility of finding a new buyer as its battery technology is not up to the mark.

There has been a growth in demand in the battery production sector due to the increasing shift towards electric vehicles. Several investments are being made in this space. Apart from its bid for AESC, GSR has made many investments in alternative energy sources and electric vehicles. Panasonic, which had earlier discussed the battery subsidiary sale with Nissan, stated that it was currently not looking at the acquisition of a battery production company as it did not find it viable.

According to a report by Bloomberg, after reporting a 28% sales decline in April, Nissan is again expected to report a decline in June. Analysts blame this drop on increased incentive spending and discounted rental fleet deliveries.

Most Popular

GameStop (GME) Earnings: Q1 loss narrows on 25% sales growth

Video game retailer GameStop Corp. (NYSE: GME), which has become the talk of the town after the unprecedented stock rally in recent weeks, reported a narrower loss for the first

Should you invest in Steel Dynamics (STLD) stock after 78% rally?

The steel industry managed to shrug off the pandemic blues earlier than expected as the recovery in industrial activity pushed up demand. With the vaccination drive and the government’s aggressive

Campbell Soup (CPB) Q3 Earnings: Key financials and quarterly highlights

Campbell Soup Company (NYSE: CPB) reported third-quarter 2021 earnings results today. Net sales decreased 11% year-over-year to $1.98 billion, as a result of lapping the demand surge at the onset

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top