Mubasher: Mitsubishi Motors on Thursday said it will sell a 34% stake to its rival Nissan in a deal worth ¥237.4 billion ($2.2 billion).
Following the announcement of the all-share deal, Mitsubishi’s shares jumped 16% during Thursday’s trades.
Once the deal is signed on 25 May, Nissan will become the largest shareholder in the Japanese auto maker, Mitsubishi said in a statement, noting that the tie-up is subject to regulatory approvals as well as the backing of its shareholders.
Commenting on the deal, Nissan CEO Carlos Ghosn stated: "We will support Mitsubishi Motors as they address their challenges and welcome them as the newest member of our enlarged alliance family."
Last month, Mitsubishi suffered a scandal over fuel efficiency in over 600,000 vehicles, which resulted in a decline in its market value.
