Merger fever as Daimler talks to Nissan
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.MERGER FEVER gripped the motor industry again yesterday amid reports that DaimlerChrysler was preparing to take a one-third stake in the ailing Japanese car maker Nissan.
The reports followed a meeting in Tokyo between the joint chairmen of DaimlerChrysler, Robert Eaton and Jurgen Schrempp, and the president of Nissan, Yoshikazu Hanawa.
After the meeting the two companies issued a statement saying that their discussions had been constructive and that they had explored possible co-operation projects. Further talks would take place in the near future.
At a later press conference, Mr Eaton fuelled speculation that a deal might be close by saying that DaimlerChrysler was "impatient" to strengthen its presence in Japan and Asia. "We want to go further and that could include producing right here," said Mr Eaton. "That will rely on close co-operation with potential partners."
Although Nissan is the world's fourth-biggest car-maker, a one-third stake in the company would cost just pounds 1.7bn. The stumbling block could be its enormous debts. Nissan has pounds 12.5bn of official interest-bearing debt on its books. But there is an estimated pounds 4bn of off-balance sheet debt in the shape of loans to suppliers and dealers.
DaimlerChrsyler is also negotiating over the purchase of Nissan's directly held stake in its truck and engine business Nissan Diesel.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments