TOKYO: Nissan Motor Co. abandoned a $1 billion deal to sell its electric-battery business because the prospective buyer failed to raise the money required.
The Japanese automaker announced it was canceling the sale to GSR Capital, saying in a statement on Monday the Chinese private-equity firm didn’t have sufficient funds. Nissan and GSR were due to close the transaction by June 29. The deadline had already been postponed, on April 27, because some conditions hadn’t been met.
The deal with GSR for Nissan subsidiary Automotive Energy Supply Corp. and manufacturing operations in Japan, the U.S. and U.K. would have ended a long search for a buyer as the carmaker works to streamline operations. The sale would have been the largest transfer of lithium-ion battery manufacturing capacity ever, Bloomberg NEF wrote in a report in August, when the agreement was first announced, and would have given Nissan flexibility to shop around for battery suppliers.
Nissan is now evaluating its options, and it’s too early to say what it will do with the battery business, a spokesman for the carmaker said by phone. GSR didn’t have an immediate comment, a representative for the firm said. -Bloomberg