tokyonew delhi may 12 japanese auto major nissan motor co today announced plans to acquire 34 per cent stake in beleaguered compatriot mitsubishi motors corporation for 237 billion yen over usd 2 billion nissan and mitsubishi motors corporation mmc announced that they have signed a basic agreement to form a farreaching strategic alliance between the two japanese automakers the strategic alliance will extend an existing partnership between nissan and mmc under which the two companies have jointly collaborated for the past five years the two companies said in a joint statement commenting on the development nissan chief executive and president carlos ghosn said it creates a dynamic new force in the automotive industry that will cooperate intensively and generate sizeable synergies we will be the largest shareholder of mmc respecting their brand their history and boosting their growth prospects terming the deal as a breakthrough transaction and a winwin for both nissan and mitsubishi motors he added we will support mmc as they address their challenges and welcome them as the newest member of our enlarged alliance family nissan said the decision to acquire a strategic stake in mmc marks the latest expansion of its alliance model built around a 17year cross shareholding arrangement with renault nissan has also acquired stakes or signed partnerships with other automotive groups including daimler and avtovaz on closing of the deal which is expected by the end of the year nissan will become the largest shareholder of mmc it said adding mmc would propose nissan nominees as board directors in proportion to nissans voting rights including a nissan nominee to become chairman of the board mitsubishi motors corp is currently in the midst of a scandal for overstating fuel economy last month the company had admitted that it overstated the mileage of four of its minivehicle models affecting 625000 cars this agreement will create a longterm value needed for our two companies to progress towards the future we will achieve a longterm value through deepening our strategic partnership including sharing resources such as development as well as joint procurement mmc chairman and chief executive osamu masuko said nissan and mmc have agreed to cooperate in areas including purchasing common vehicle platforms technologysharing joint plant utilisation and growth markets the statement added rkl sbt mkj