Nissan Motor Co. said Monday it has decided to cancel plans to sell its lithium-ion battery business to GSR Capital, as the Chinese investment firm lacked the necessary purchase funds.
The automaker said in August 2017 it would sell battery subsidiary Automotive Energy Supply Corp. and its U.S. operations in Tennessee, as well as plants in Sunderland, England and some factories in Japan, for an undisclosed sum.
At the time, Nissan said the sale would enhance the company's competitiveness as it focuses on designing and producing market-leading electric vehicles.
Under the plan, Nissan was to first take full control of AESC by acquiring the 49 percent stake held by Japanese electronics-maker NEC Corp. and its subsidiary NEC Energy Devices. Nissan then sought to sell all shares to GSR Capital.