Mercedes Exits Nissan Stake in US$325 Million Deal

Mercedes-Benz has sold its entire 3.8% stake in Nissan for ¥47.83 billion (US$324.65 million), a source familiar with the matter told Reuters, signaling further unraveling among traditional automotive alliances. The stake, held through Mercedes-Benz’s pension trust since 2016, was sold via a block trade at ¥341.3 per share, roughly a 6% discount to Nissan’s Aug. 25 closing price of ¥363.

About 70% of the sale was allocated to the top ten investors, with demand exceeding supply, though buyers were not disclosed. A Mercedes-Benz spokesperson described the stake as “not of strategic importance,” framing the sale as part of a portfolio rebalancing effort. Nissan declined to comment.

The divestment caused a 6% drop in Nissan shares on Aug. 26, its largest single-day decline since early July, reflecting investor concerns over the automaker’s financial instability, restructuring costs, and trade policy uncertainties.

The sale comes amid broader structural changes in the automotive sector. Earlier in 2025, Nissan and major shareholder Renault reduced their required cross-shareholding from 15% to 10%. Renault currently owns 35.7% of Nissan, combining direct and trust-held shares. Last month, Renault recorded an US$11 billion writedown on its Nissan stake, citing declining profitability and market conditions. Analysts expect further reductions, though contractual limits restrict open-market sales.

Nissan continues to face operational and financial pressure. For the April–June quarter, the company reported a net loss of ¥115.7 billion (US$782 million), following three consecutive quarterly losses. Sales fell 9.7% year-over-year to ¥2.7 trillion, with global deliveries down 10.1%. North American sales declined 2.4% and Japanese sales 11.1%, partially due to tariff-related headwinds and weaker demand in key markets.

The United States imposed a 25% tariff on Japanese auto imports in April, later reduced to 15% under a mid-2025 bilateral trade agreement not yet implemented. “We welcomed the improvement, but 15% is still a challenging number,” Nissan CEO Ivan Espinosa said on July 30, noting continued cost-control efforts.

As part of its Re:Nissan restructuring plan, announced after a fiscal 2024 net loss of US$4.5 billion, Nissan aims to cut fixed costs by ¥500 billion by fiscal 2026–2027. The strategy includes closing the CIVAC manufacturing plant in Mexico by March 2026, following the prior closure of the Oppama plant in Japan.