Daimler Reportedly Buying Nissan Stake

Daimler-Benz will buy a majority stake in Nissan Diesel Motor Co.--as much as 60%--making it the first Japanese vehicle maker to become a subsidiary of a foreign company, the Nihon Keizai newspaper reported, without citing sources. Nissan Motor Co., Nissan Diesel’s largest shareholder, will sell a portion of its 39.8% stake in Japan’s fourth-largest truck maker to Daimler, the paper said. The German auto company will also buy newly issued shares to boost its stake above the 50% threshold required for control. Nissan Motor’s stake in Nissan Diesel will fall to 20% or less, making it the company’s second-largest shareholder, the paper said. An alliance between Nissan Diesel and Daimler would help Daimler expand in Asia and give financially strapped Nissan money to focus on its passenger car business. “We are negotiating several opportunities for cooperation with Nissan Diesel,” said Daimler’s chief spokesman, Christoph Walther.