Nissan Motor Co. offered to buy the rest of engine-maker Aichi Machine Industry Co. it doesn’t already own for 14.2 billion yen ($183 million) in stock, in the carmaker’s biggest acquisition in almost seven years.
Nissan, which owns 41 percent of the engine company, offered 0.4 of its stock for each Aichi share, according to a statement to the Tokyo Stock Exchange today. That’s 28 percent higher than Aichi’s last close.
Buying Aichi Machine will help reduce costs and enhance quality, Nissan said in the statement. The purchase is Nissan’s biggest since it paid 40.5 billion yen to increase its stake in Calsonic Kansei Corp. in January 2005.
Nissan fell 0.3 percent to close 668 yen, while Aichi Machine fell 1.9 percent to 209 yen before the announcement. Aichi will be delisted March 16, according to the statement.