Nissan Motor has cancelled the sale of its electric vehicle battery business to a Chinese investment firm, according to a Reuters report.
Nissan originally announced plans to sell its Automotive Energy Supply Corporation (AESC) subsidiary, which has battery plants in Japan, UK and the US, last year and had been in advanced negotiations with China's GSR Capital for a price thought to be around US$1bn.
GSR Capital typically buys foreign industrial companies involved in new and advanced technologies, including electric vehicle technology companies such as lithium-ion battery producers, which are particularly relevant to China given the anticipated growth in this market.
The report suggested a lack of forthcoming funds had held back the sale, prompting Nissan to cancel the deal and make other plans.
Before its decision to sell to GSR Capital, Nissan had planned to take full control of AESC by acquiring the 49% stake in the company held by NEC and one of its subsidiaries.
It was unclear whether Nissan would look for another buyer keep AESC in-house.