KKR & Co., a US-based private equity firm, is considering investing in Nissan Motor Co. after talks to combine with rival Honda Motor Co. ended. The company is evaluating an equity or debt investment to improve Nissan’s financial position.
The decision comes as Honda and Nissan formally ended negotiations for a potential merger, which would have created one of the world’s largest carmakers. Despite this, the two companies will continue their strategic partnership on in-house development of batteries, autonomous driving, software, and electric vehicle technology.
Nissan is looking for an ally from the technology sector and US-based firms to help improve its financial situation. The company has been facing challenges due to an outdated product lineup and heavy discounting, which has damaged its bottom line.
KKR has a presence in Japan, where it manages about 39% of its Asia Pacific portfolio. The firm has a successful track record in Japan, with a gross internal rate of return of around 40%. It is also exploring other potential transactions in the country, including investments in Japanese companies such as Fuji Soft Inc. and Marelli Holdings Co.
Other firms are also circling Nissan, including Hon Hai Precision Industry Co., better known as Foxconn. The Taiwanese company’s chairman has stated that it is open to buying Renault SA’s 36% shareholding in Nissan or partnering with the company.
The move by KKR to invest in Nissan comes at a time when the Japanese carmaker is looking for a new partner. The decision is still private, and representatives from both firms have declined to comment.
Source: https://eu.detroitnews.com/story/business/autos/foreign/2025/02/13/kkr-is-said-to-weigh-nissan-investment-after-honda-talks-end/78517007007