NEC's Transfer of Lithium Ion Battery Business Allows Nissan To Sell Their Battery Business To Chinese Company Envision
TACH's TAKE, Just Another step in the Chinese monopoly of Electric Vehicles
NISSAN Article Below
TOKYO, Aug, 03 2018; NEC Corporation announced today that NEC has determined to transfer (i) all shares of NEC Energy Devices, Ltd. owned by NEC to Envision Electrodes Corporation Ltd, a member of Envision Group, a renewable energy company, and (ii) all shares of Automotive Energy Supply Corporation (AESC) owned by NEC and NEC Energy Devices to Nissan Motor Co., Ltd. (Nissan), thereby enabling Nissan to transfer all shares of AESC to Envision.
The transfer of NEC Energy Devises shares to Envision and AESC shares to Nissan is subject to the fulfillment of the conditions outlined in the transfer of shares. If these transfers are executed, capital gain will occur.
1. About the Transfer of Shares
NEC is focusing on Solutions for Society businesses. In the smart energy field, NEC is shifting towards services for the construction, operation, and maintenance of electric storage systems to support goals such as stabilizing power grids and improving the efficiency of companies' energy use.
Based on this policy, NEC had determined to transfer all shares of AESC owned by NEC and NEC Energy Devices to Nissan, thereby enabling Nissan to transfer all shares of AESC, as well as Nissan's electric battery operations and production facilities, to GSR Capital (GSR), a private investment fund, as described in the "Regarding the recording of gain from the transfer of shares in an affiliated company accounted for by the equity-method" press release dated August 8, 2017. NEC had also determined to transfer shares of NEC Energy Devices owned by NEC to GSR as described in the "Regarding the recording of gain from the transfer of shares in a consolidated subsidiary" press release dated December 4, 2017. Those transactions were scheduled to be executed on June 29, 2018 as all precedent conditions were fulfilled, however, those transactions were not executed as GSR failed to fulfill the purchaser's payment obligations under those transactions, due to lack of funds. After that, Nissan and NEC entered into negotiations with Envision and, as Nissan and NEC agreed to deal with Envision, NEC has determined to transfer NEC Energy Devices shares and AESC shares as described in the share transfer summary.
The transfer of NEC Energy Devices shares to the Company and AESC shares owned by NEC and NEC Energy Devices to Nissan is respectively subject to (i) the fulfillment of the closing conditions of the other share transfer agreement, and (ii) the fulfillment of the closing conditions of the share transfer between Nissan and Envision.
The transfer of NEC Energy Devices shares to the Company and AESC shares owned by NEC and NEC Energy Devices to Nissan is scheduled to be executed on the same day as the transfer of AESC shares to Envision by Nissan.
2. Share Transfer Summary
(1) Transferred shares and transferee
- NEC Energy Devices shares
Number of transferred shares: 4,000 shares (percent ownership: 100%)
Transferee: Envision Electrodes Corporation Ltd
- AESC shares
Number of transferred shares: 45,962 shares
Portion owned by NEC: 39,396 shares (percent ownership: 42%)
Portion owned by NEC Energy Devices: 6,566 shares (percent ownership: 7%)
Transferee: Nissan Motor Co., Ltd.
(2) Scheduled Transfer Date
March 29, 2019
3. Future Outlook
Approximately 10.0 billion yen in operating profit upon execution of the transfer of the NEC Energy Devices shares and approximately 10 billion yen in non-operating income upon execution of the transfer for AESC shares are expected to be recorded in the consolidated financial statement for the fiscal year ending March 31, 2019. This profit and income, however, has already been incorporated in the financial forecasts for the fiscal year ending March 31, 2019.
About NEC Corporation
Based on its Mid-term Management Plan 2015, the NEC Group globally provides "Solutions for Society" that promote the safety, security, efficiency and equality of society. Under the company's corporate message of "Orchestrating a brighter world," NEC aims to help solve a wide range of challenging issues and to create new social value for the changing world of tomorrow. For more information, please visit http://www.nec.com/en/global/about/solutionsforsociety/message.html.
Editor's Note: Look at the chart above, it shows that there will not be enough oil in the world to supply gasoline for all of the private vehicles projected to fill roads in a "westernized" China, so without the availability of electric vehicles, powered vehicles would not be available in China...therefore, it's EV's or Bikes! No wonder China is pushing Electric...but why is the rest of the world following like lemmings to the sea?
Nissan to Sell Electric Battery Business to Envision Group
YOKOHAMA August 3, 2018; Nissan Motor Co., Ltd. (Nissan) today announced it has entered into a definitive agreement with Envision Group (Envision), a sustainable energy operator, for the sale of Nissan’s electric battery operations and production facilities to Envision.
The agreement was signed following the cancellation of an earlier transaction for sale to a third party.
Envision has committed to complete the proposed acquisition of Nissan subsidiary Automotive Energy Supply Corporation and battery manufacturing operations in Smyrna, Tennessee, owned by Nissan North America Inc. (NNA), and in Sunderland, England, owned by Nissan Motor Manufacturing (UK) Ltd. (NMUK).
Envision will also acquire Nissan’s Japanese battery development and production engineering operations located in Oppama, Atsugi and Zama.
Yasuhiro Yamauchi, Nissan’s Chief Competitive Officer, said: “We are pleased to have secured a definitive agreement with Envision, a leading global company in the field of sustainable energy. The transaction will enable Nissan to concentrate on developing and producing market-leading electric vehicles – in line with the goals set in our midterm plan Nissan M.O.V.E. to 2022. We are confident that Envision will be a strong, long-term owner of the new company and that it will further grow as a battery company with increased competitiveness.”
Lei Zhang, founder and CEO of Envision, said: “We are excited to announce the acquisition of Nissan’s battery business, a leading producer of advanced, safe and reliable lithium-ion batteries. Together with the battery business management team and its highly skilled workforce, this partnership will see Envision expand both organizations’ footprints into the intelligent energy ecosystem to create new innovative solutions for the IoT value chain. With this strategic acquisition and collaboration, we aim to expand our activities via investment into the new company to realize the value of IoT technology for smart transportation, V2G, and smart city solutions.”
The workforce at all facilities covered by the deal will continue to be employed. The headquarters and development centers of the business will remain in Japan.
Nissan will implement the transaction by first taking full control of AESC – founded in 2007 to develop advanced lithium-ion batteries – by acquiring the combined 49% minority holding held by NEC Corporation and its wholly owned electrode development and production subsidiary, NEC Energy Devices, Ltd (NECED).
NEC today announced its approval of the sale of AESC shares to Nissan and the sale of NECED shares to Envision.
Today’s announced transaction is subject to normal consultation with staff representative bodies and, pending regulatory approvals, is expected to be completed by March 29, 2019. The transaction is contingent on Nissan purchasing all shares in AESC and Envision concluding purchase of all NECED shares from NEC. Financial terms have not been disclosed.
Under the agreement, Nissan has agreed to retain a 25% share or equity interest in the entity newly formed by Envision.