Updated July 11, 2018 06:04:54 Mitsubishis Eclipse is the largest auto maker in the U.K., with an annual sales volume of about $1 billion, making it one a member of the automotive elite.
Its merger with rival General Motors (GM) is set to boost Mitsubashi Eclipse’s market share and could boost its earnings per share, the Wall Street Journal reported on Monday.GM shares were up more than 5 percent at $27.83, but were down nearly 3 percent at the time of the announcement.
In its statement, Mitsubashis said that it was “very pleased” to announce the merger with General Motors, adding that the two companies share common values, “which is why we have agreed to a strategic and mutually beneficial merger with them.”
The company also said it will continue to work with GM to build a “world class manufacturing facility in China,” according to the Journal.
“This deal will allow Mitsubushi Eclipse to focus on its core strengths, while also creating new opportunities to accelerate and expand our global presence,” CEO Yasuo Nakashima said in a statement.
The merger is expected to close by the end of 2019.
Shares of Mitsuboshis Eclipse rose 1.4 percent to $20.25 in late afternoon trading.