Nissan scraps $1.0b battery unit sale

TOKYO, July 2 (Reuters): Japan's Nissan Motor Co has cancelled a potential $1.0 billion sale of its electric battery business to China's GSR Capital.

Nissan said that the sale has been scrapped for a lack in fund with the Chinese investment firm to make the purchase.

The Japanese automaker had announced in August last year its plan to sell Automotive Energy Supply Corp for an undisclosed sum.

Nissan's Automotive Energy Supply Corp includes battery plants in the United States, England and Japan.

A source told Reuters at the time that GSR had agreed to pay Nissan a total of $1.0 billion for the deal.

Nissan said in a statement on Monday that it would look at future prospects for the transaction.

GSR was not immediately available for comment.

Nissan had planned to take full control of the business before the sale to GSR, buying the combined 49 per cent minority stake held by NEC Corp and one of its subsidiaries.

GSR, which has previously invested in clean technology and electric cars, mainly targets foreign industrial and emerging technology companies.

The industrial and tech companies include electric car batteries and pharmaceuticals firms.

Battery and lithium producers have represented attractive assets for Chinese firms, amid a push by Beijing to promote electric vehicles.

Beijing is also eyeing to help domestic car makers leapfrog the combustion engine to build global auto brands.