YOKOHAMA, Japan (May 12, 2016) — Nissan Motor Co. Ltd. is planning to buy a 34-percent ownership stake in Mitsubishi Motors Corp. for $2.2 billion.
Nissan CEO Carlos Ghosn said the proposed alliance would cover purchasing, common platforms, joint manufacturing, technology development and target shared cost savings. Nissan would also contribute corporate governance and management expertise to help Mitsubishi restore public trust in its brand.
The companies said they plan to sign an agreement by May 25 in which Nissan can name four directors to Mitsubishi Motors' board. A Nissan-appointed director can also be named chairman of Mitsubishi Motors, according to a filing today. The deal will be invalid if not completed within a year.
Nissan is riding to Mitsubishi's rescue after it called out Mitsubishi for cheating on emissions tests, plunging its close partner into crisis and uncertainty about its very viability.
The purchase is poised to vault Nissan past Mitsubishi group companies to become Mitsubishi Motors' single-largest shareholder.
“It represents a win-win,” Mr. Ghosn said. “We believe in the potential of Mitsubishi Motors.”
Mr. Ghosn said Nissan, as Mitsubishi's biggest shareholder, would “preserve and nourish” the Mitsubishi brand.