China’s GSR to acquire Nissan’s electric battery business
Japan’s Nissan Motor has agreed to sell its electric battery operations and production facilities to Chinese private equity firm GSR Capital. Financial terms were not disclosed.
Assets to be sold to the private equity firm include Automotive Energy Supply Corp. (AESC) – a joint venture set up by Nissan and Japanese IT services provider NEC to produce advanced lithium-ion batteries for Nissan’s electric vehicles – as well as battery manufacturing plants in the US, UK, and Japan. The transaction – which is expected to close by the end of this year – is pending regulatory approvals.
Nissan will implement the transaction by first taking full control of AESC, acquiring the combined 49% stake held by NEC Corp. and its wholly-owned battery electrode subsidiary NEC Energy Devices. NEC has agreed to the share transfer to Nissan, and is also in negotiations with GSR for the sale of NEC Energy Devices.
“The acquisition of AESC represents an important step for us in the new energy vehicle industry chain,” Sonny Wu, chairman of GSR, said in a statement. “We plan to further invest in R&D, expand existing production capacity in the US, UK, and Japan, and also establish new facilities in China and Europe, enabling us to better serve customers around the world.”
With offices in Beijing, Hong Kong, and Palo Alto, GSR focuses on electric vehicles, new energy, modern agriculture, healthcare and wireless technologies. Last year, it closed a $1 billion fund dedicated to investing in LED companies globally.
GSR is affiliated to early-stage venture firm GSR Ventures, renminbi investment platform GSR United Capital, and overseas acquisition platform Go Scale Capital. Go Scale and GSR Capital launched a cross-border buyout and M&A fund in July 2015.
Prior to the formation of the M&A fund, Go Scale attempted to buy an 81.1% stake in Lumileds, Philips' LED components and automotive lighting unit. However, the deal was terminated due to regulatory concerns raised by the Committee on Foreign Investment in the United States (CFIUS).
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