7/2/2018

Nissan Drops Sale of Battery Business to Chinese Investor

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Nissan Motor Co. has abandoned plans to sell its electric car battery operations to Chinese’s GSR Capital as much as $1 billion after concluding the investment firm lacked the funds to complete the purchase.

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Nissan Motor Co. has abandoned plans to sell its electric car battery operations to Chinese’s GSR Capital as much as $1 billion after concluding the investment firm lacked the funds to complete the purchase.

The would-be sale of Nissan’s Automotive Energy Supply Corp. had a June 29 deadline. The deal, announced nearly a year ago, was originally expected to be completed by the end of 2017. But the transaction was contingent upon Japan’s NEC Energy Devices selling its 7% stake in AESC.

The deal was to include Nissan’s battery production operations in Smyrna, Tenn., and Sunderland, England, and a portion of the carmaker’s battery research and development activities at three tech centers in Japan.

Nissan tells Reuters it still expects to sell AESC. The company did not say whether GSR might return as the buyer.