Nissan Paying Around $2.2 Billion For 34% Stake In Mitsubishi Motors

Nissan Motor Co. on Thursday said it will take a 34% stake in fellow Japanese automaker Mitsubishi Motors Corp. for 237 billion yen ($2.18 billion). The move will make Nissan the biggest shareholder in Mitsubishi, said Carlos Ghosn, chief executive and president of Nissan, in a statement. The two companies, who have had a partnership in place for five years, will cooperate over purchasing, common vehicle platforms, technology-sharing, joint plant utilization and growth markets. Under terms of the deal, Nissan will purchase 506.6 million newly-issued Mitsubishi shares at a price of 468.52 yen per share. Mitsubishi admitted overstating fuel-economy data for certain automobiles in April, and shares have lost around 44% this year. On Thursday, Mitsubishi shares rallied 16% in Tokyo on speculation ahead of the deal, while Nissan shares fell 1.4%.