KUALA LUMPUR: Nissan Motor Co Ltd has issued a notice to terminate its joint venture (JV) with Tan Chong Motor Holdings Bhd (TCMH) that imports and distributes Nissan vehicles and spare parts in Vietnam.
In a filing with Bursa Malaysia today, TCMH said the notice was effective from Dec 9, 2018, while the JV agreement dated Sept 22, 2010, would terminate on Sept 10, 2019.
In 2010, TCMH's wholly-owned subsidiary ETCM (V) Pte Ltd acquired a 74% stake in the JV company, Nissan Vietnam Co Ltd, from Kjaer Group A/S. Nissan Motor holds the remaining 26% of the charter capital.
TCMH, which is the exclusive distributor of Nissan vehicles in Malaysia, did not give any reason for the notice of termination.
However, it said the termination had no significant financial and operational impact on the group for the current financial year.
“Notwithstanding the above, ETCM remains open to further discussion with Nissan Motor to explore alternative solutions and business opportunities for mutual benefits in Vietnam,” the company added.