On Thursday, November 7, Mitsubishi revealed plans to repurchase a substantial portion of its shares from Nissan. In a statement from Japan, the automaker shared that it intends to acquire up to 149,028,300 shares through an order on the Tokyo Stock Exchange, priced at approximately $3.01 per share based on current exchange rates.
This buyback represents 10.02 percent of the company’s existing non-treasury shares, which will lower Nissan’s ownership stake in Mitsubishi from 34.07 percent to 24.05 percent. Despite this reduction, the two brands confirmed they will maintain their ongoing collaboration on various projects.
Although the specific nature of their continued partnership was not disclosed, the two companies are part of a broader alliance with Renault and work together on a range of vehicles across different markets.
In the U.S., their collaboration has resulted in the Nissan Rogue serving as the basis for the Mitsubishi Outlander. Looking ahead, the brands have outlined plans to jointly develop several new models, including a mid-size pickup for the U.S. market.
This announcement coincided with news from Nissan that it would cut 9,000 jobs globally and reduce its worldwide production capacity by 20 percent. Additionally, Nissan lowered its annual profit outlook, revising its operating profit forecast downward by 70 percent to $975 million.
The company also outlined steps to reduce administrative costs. Although there has been no official statement linking these actions, the stock buyback could be seen as a response to Nissan’s disappointing sales performance.