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Nissan has announced that it will take a 34% equity stake in Mitsubishi Motors Corporation for 237 billion yen. The strategic alliance will extend an existing partnership between the two automakers, which was signed five years ago.

Under the terms of the transaction, Nissan will purchase 506.6 million newly-issued MMC shares at a price of 468.52 yen per share, making it the largest shareholder of Mitsubishi. The price per share reflects the volume weighted average price over the period between April 21 2016 and including May 11 2016.

MMC and Nissan expect Mitsubishi Heavy Industries, Mitsubishi Corporation and The Bank of Tokyo – Mitsubishi UFJ to maintain a significant collective ownership stake in Mitsubishi Motors, and to support the strategic alliance.

The transaction is subject to the signing of a definitive Alliance Agreement (expected by the end of May this year), the signing of a shareholders agreement with the current shareholders in Mitsubishi Group and regulatory approvals. It is expected to close by the end of the year.

The decision by Nissan to acquire a strategic stake in MMC marks the latest expansion of its Alliance model, built around a 17-year cross shareholding arrangement with Renault. Nissan has also acquired stakes or signed partnerships with other automotive groups including Daimler, and AvtoVaz.

On closing, MMC will propose Nissan nominees as board directors in proportion to Nissan’s voting rights, including a Nissan nominee to become chairman of the board.



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