From rumor to reality in less than 24 hours. Nissan has announced just a few minutes ago it will acquire a 34-percent stake in Mitsubishi Motors for 237 billion yen (about $2.17B).

Japan's national public broadcasting organization, NHK, reported just yesterday that Nissan could acquire a 34-percent stake in Mitsubishi Motors and now we have official confirmation from the two car manufacturers. As part of the agreement, Nissan is buying 506.6 million shares in Mitsubishi Motors Corporation for 468.52 yen ($4.3) per share for a total of 237B yen ($2.17B). As a consequence, Nissan will become the biggest shareholder of MMC and will effectively take control of the troubled manufacturer.

Why troubled? Because Mitsubishi is involved in a major scandal concerning faked fuel economy tests, but now with Nissan acting as the single-largest shareholder, Mitsu has more chances of bouncing back. The scandal has greatly affected MMC’s stock prices (down by 43% since April 19), so Nissan probably managed to ink a pretty sweet deal.

Carlos Ghosn, chief executive and president of Nissan, described the transaction as a “win-win” situation and promised to “preserve and nourish” the Mitsubishi marque. His sentiments were echoed by Osamu Masuko, chairman of the board and chief executive of MMC: “This agreement will create long-term value needed for our two companies to progress towards the future.”

The new deal between the two comes as an extension of a partnership signed back in 2010 for a joint minicar venture. As part of the new agreement, Ghosn said that Nissan and Mitsubishi Motors could share R&D work for electric vehicles, pickups, and autonomous cars.

Source: Mitsubishi, Nissan

Be part of something big