By Obinna Uballa
Nissan Motor shares fell as much as 6.7% in Tokyo trading on Monday before trimming losses to close 6% lower, after Mercedes-Benz’s pension trust confirmed plans to sell its remaining stake in the Japanese automaker.
The divestment, worth about $346 million, will likely see Mercedes offload its 3.8% holding, which it described as “not strategically significant.”
The stake, moved into pension assets in 2016, represents just 2.7% of the trust’s portfolio, dominated by Daimler Truck at nearly 93%, CNBC reported.
Mercedes-Benz is Nissan’s second-largest shareholder after Renault, which holds 35.7%, according to LSEG data, the report said.
The report noted that the sell-off adds to pressure on Nissan’s stock, already weighed down by U.S. tariffs, weak sales, and the costly transition to electric vehicles amid stiff competition, particularly from Chinese automakers.
The company, it was gathered, has struggled to regain momentum after scrapping talks with Honda in February that could have created the world’s third-largest carmaker.
In May, Nissan unveiled plans to cut 11,000 jobs and shut seven plants, while CEO Ivan Espinosa said in June the priority was “fixing the struggling automaker” through a sweeping restructuring program.
Although Washington eased U.S. auto tariffs in July l, cutting the original 25% duty to an effective 15%, the relief has done little to lift investor confidence, the report said.
Nissan shares have now lost over 29% year-to-date, deepening concerns about the automaker’s turnaround prospects.
