Nissan invests in Mitsubishi Motors $2.2 billion!

Nissan invests in Mitsubishi Motors $2.2 billion!:In order to take a controlling 34% stake in Mitsubishi Motors, YOKOHAMA, Japan-Nissan Motor Co. is ready to invest 237 billion yen which is about $2.2 billion.

This purchase is meant to transform Nissan into the single-largest shareholder of Mitsubishi. By May 25 the agreement between the companies will be signed and four directors to Mitsubishi Motors' board will be named by Nissan. Rumors say that even the chairman of Mitsubishi Motors might beNissan's director. The deal must be completed within a year or it will be invalid.

Looks like Nissan decided to save Mitsubishi after it was caught cheating on emissions tests for so many years. Carlos Ghosn the CEO of Nissan and Mitsubishi CEO Osamu Masuko outlined the alliance after the boards of both companies met to sign off on the plans earlier. This alliance will coverpurchasing, common platforms, joint manufacturing, target shared cost savings, and technology development.