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Mercedes-Benz to Sell Its Nissan Stake

Nissan Motor Co. shares plunged on Tuesday after Mercedes-Benz confirmed plans to offload its 3.8% holding in the Japanese automaker. The move rattled Tokyo markets, sending Nissan’s stock down as much as 6.7% before recovering slightly to end around 6% lower.

The stake, worth roughly $346 million at current market prices, is held through Mercedes-Benz’s pension trust. According to company officials, the Nissan shares were initially shifted into pension assets in 2016 and are now being divested as part of a portfolio restructuring. Importantly, Mercedes-Benz stressed that the stake was not considered strategically significant, signaling that the decision is more about cleaning up its balance sheet than a reflection on Nissan’s business itself.

Impact on Shareholding Structure

Despite holding a relatively small percentage, Mercedes-Benz remains Nissan’s second-largest shareholder after Renault. Renault continues to maintain a dominant 35.7% stake, based on LSEG data, making it the key strategic partner in Nissan’s global operations. For comparison, Daimler Truck represents nearly 93% of Mercedes-Benz’s overall pension holdings, while Nissan accounts for just 2.7%, underscoring the limited weight Nissan carries in Mercedes-Benz’s portfolio.

The announcement comes at a sensitive time for Nissan, whose shares have already fallen more than 29% since the start of 2025. Investors are increasingly concerned about the automaker’s ability to navigate global challenges, particularly in the electric vehicle (EV) sector where Chinese manufacturers like BYD and Nio are rapidly gaining market share.

Pressure on Nissan’s Struggling Business

Nissan has been under mounting strain for several years. In May, the automaker revealed plans to cut 11,000 jobs and shutter seven manufacturing plants worldwide as part of a sweeping restructuring effort. Nissan’s Chief Planning Officer, Ivan Espinosa, emphasized in June that the company’s immediate goal is to stabilize operations before shifting focus to long-term growth.

Last year, Nissan briefly explored a potential partnership with Honda to create what could have been the world’s third-largest carmaker. However, talks collapsed in February 2025, leaving Nissan without the strategic scale it had hoped to achieve.

Adding to the pressure, U.S. trade tariffs have weighed heavily on Japanese automakers. Earlier this year, tariffs on imported vehicles were initially set at 25%, which could have been devastating for Nissan’s U.S. business. Following negotiations, tariffs were reduced to a more manageable 15% — a combination of a halved 12.5% rate and a 2.5% “Most Favored Nation” base tariff. While the reduction offered some relief, Nissan remains vulnerable to geopolitical trade tensions.

A Stock Under Heavy Scrutiny

Nissan’s stock has been on a downward trajectory throughout 2025. With more than a quarter of its value erased this year alone, investors are bracing for continued volatility. Analysts point out that beyond shareholder reshuffles, Nissan must urgently address declining vehicle sales and accelerate its EV transition strategy to remain competitive.

The divestment by Mercedes-Benz may not fundamentally alter Nissan’s strategic direction, but it sends a strong signal to markets. For investors, it raises questions about whether other stakeholders might follow suit, and whether Nissan can deliver a turnaround plan robust enough to restore confidence.

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