Nissan Motor shares tumbled on Tuesday after Mercedes-Benz announced plans to offload its 3.8% holding in the Japanese automaker.

Tokyo-listed shares of Nissan declined as much as 6.7% before paring some losses to trade 6% lower.

Mercedes-Benz's pension trust will divest its stake worth roughly $346 million in Nissan Motor, a company spokesperson reportedly said on Monday .

The spokesperson added that Nissan holdings, which were moved into pension assets in 2016, were not strategically significant while framing the sale of the remaining 3.8% stake as part of a portfolio cleanup. Nissan stake makes up 2.7% of the company's total holdings, with Diamler Truck constituting nearly 93%.

Mercedes-Benz is Nissan's second-largest shareholder after Renault — 35.7% stake — LSEG data sho

See Full Page