Nissan Motor Co. was reported that they would take a decision on buying a controlling stake in Mitsubishi Motors. It has now been confirmed that Nissan will be taking over 34 percent of Mitsubishi's shares. The deal was confirmed for an astounding USD 2.2 billion.
The agreement and transfer of shares are expected to be finalised by May 2016-end. Nissan will also be taking control of Mitsubishi's Board of Directors. Overall, Nissan will have control of Mitsubishi's working in the immediate future.
Under the agreement, Nissan and Mitsubishi will be sharing technology, manufacturing facility, as well as platforms. Nissan is calling the agreement a strategic partnership.
Recently, Mitsubishi was hit with a falsifying fuel economy figures in several of its vehicles. Since the confirmation from the manufacturer itself, sales have dropped down considerably. Mitsubishi's share price have also declined from April onwards.