Mercedes-Benz's pension trust has completely divested its 3.8% holding in Nissan Motor for 47.83 billion yen (255 million), triggering the Japanese carmaker's steepest daily decline since July.
Nissan shares plummeted over 6% following Monday's announcement, reflecting mounting investor scepticism about the company's turnaround prospects amid challenging market conditions.
The German manufacturer sold its shares at 341.3 yen each - nearly 6% below Monday's closing price - with demand exceeding supply despite the discount. Mercedes had transferred the stake to its pension assets in 2016 but deemed it strategically unimportant.
The disposal comes as Nissan battles significant headwinds across key markets. The company posted a 353 million quarterly loss through June, struggling with tariffs and declining sales in the US and China.
Chief executive Ivan Espinosa, who assumed leadership in April, has unveiled an ambitious recovery plan involving substantial capacity cuts. By fiscal 2027, Nissan aims to reduce global production from 3.5 million to 2.5 million vehicles whilst closing seven manufacturing sites.
The sale follows Nissan's agreement with longtime partner Renault to restructure their alliance, lowering minimum shareholding requirements from 15% to 10%. However, Renault's 35.7% stake remains largely trapped due to contractual restrictions on open market sales.
"Renault will probably continue wanting to unwind its stake, but faces significant constraints," noted CLSA analyst Christopher Richter. The French company recently wrote down its Nissan investment by 7.3 billion.
Nissan's struggles have intensified since former boss Carlos Ghosn's dramatic exit. Ghosn, architect of the Renault-Nissan alliance, faces financial misconduct charges in Japan - allegations he denies.
Analysts expect continued pressure on the partnership as both companies reassess their strategic priorities. Tokai Tokyo's Seiji Sugiura anticipates Renault will gradually reduce its Nissan exposure as the alliance weakens.
Despite Espinosa's assertion that cost-cutting measures are showing progress, investors remain unconvinced about Nissan's ability to navigate current challenges effectively. The Mercedes stake sale underscores broader institutional wariness about the Japanese manufacturer's near-term prospects.
