Mitsubishi reportedly selling stake in Fuso
Dec 11, 2003 12:00 PM
Mitsubishi Motors, the Japanese carmaker which is one-third owned by DaimlerChrysler, is in discussions to sell its entire 42 per cent stake in truckmaker Mitsubishi Fuso for an estimated $933 million, according to reports in Japan Today. The company has declined comment, but it is expected that 22 per cent of Fuso will be sold to DaimlerChrysler and 20 per cent to companies affiliated with the Mitsubishi Corporation, the Japanese trading company. The move is thought to have been spurred by MMC’s attempt to offset huge losses at its U.S. financial division, which has millions of dollars in defaulted loans. DaimlerChrysler currently owns 43 per cent of Fuso, and if the deal goes through it will have to absorb the truckmaker’s estimated $1.9 billion in debt onto its balance sheet once it acquires the additional 22 per cent stake. DaimlerChrysler currently is in a legal battle with billionaire financier Kirk Kerkorian over the original terms of its acquisition of Chrysler.
