NISSAN is to take a 34 per cent stake in rival Japanese manufacturer Mitsubishi Motors Corporation (MMC) in a £1.52bn deal.
The alliance, which follows in the wake of Mitsubishi’s recent fuel efficiency scandal that saw regulatory tests break Japanese rules, will makes Nissan the firm’s single largest shareholder.
Carlos Ghosn, CEO of Nissan and Renault, said: ‘This is a breakthrough transaction and a win-win for both Nissan and Mitsubishi Motors. It creates a dynamic new force in the automotive industry that will cooperate intensively, and generate sizeable synergies.
‘We will be the largest shareholder of MMC, respecting their brand, their history and boosting their growth prospects. We will support MMC as they address their challenges and welcome them as the newest member of our enlarged Alliance family.’
The strategic alliance will extend an existing partnership between Nissan and Mitsubishi Motors, under which the two companies have jointly collaborated for the past five years.
Nissan and MMC have agreed to co-operate in areas including purchasing, common vehicle platforms, technology-sharing, joint plant utilisation and growth markets.
Osamu Masuko, chairman of the board and chief executive of MMC, added: ‘Through its long history of successful partnerships Nissan Motor has developed a deep knowledge of maximising the benefits from alliance partnerships.
‘This agreement will create long-term value needed for our two companies to progress towards the future. We will achieve long-term value through deepening our strategic partnership, including sharing resources such as development, as well as joint procurement.’
The transaction is subject to the signing of a definitive Alliance Agreement, expected by the end of May 2016, as well as agreement by shareholders and regulatory approval.
Nissan’s net profit rose by 14.5 per cent to £4bn for the year to March.
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