After news stories surfaced yesterday that Nissan could be purchasing Mitsubishi, today we learn that Nissan in fact has formed a “strategic alliance” as Nissan has purchased a controlling interest with a 34 percent stake in Mitsubishi Motors Corporation for 237 billion yen.

The press release sent out this morning notes that the new business deal will extend the alliance between the two companies that has existed for the past five year. The agreement includes a shared cooperation in areas of purchasing, common vehicle platforms, technology-sharing, joint plant utilization and growth markets between Nissan and Mitsubishi.

“This is a breakthrough transaction and a win-win for both Nissan and Mitsubishi Motors,” said Carlos Ghosn, chief executive and president of Nissan. “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. We will support MMC as they address their challenges and welcome them as the newest member of our enlarged Alliance family.”

The specifics of the deal show that Nissan will purchase 506.6 million newly issued MMC shares at a price of 468.52 yen per share. The price per share reflects the volume weighted average price over the period between April 21, 2016 and including May 11, 2016. Nissan will become the largest shareholder of MMC on closing.

“Through its long history of successful partnerships Nissan Motor has developed a deep knowledge of maximizing the benefits from alliance partnerships,” Osamu Masuko, chairman of the board and chief executive of MMC said. “This agreement will create long-term value needed for our two companies to progress towards the future. We will achieve long term value through deepening our strategic partnership including sharing resources such as development, as well as joint procurement.”

The press release announcing the deal notes that MMC and Nissan expect Mitsubishi Heavy Industries, Mitsubishi Corporation and The Bank of Tokyo – Mitsubishi UFJ to maintain a significant collective ownership stake in Mitsubishi Motors, and to support the strategic alliance. The completion of the deal is subject to the signing of a definitive Alliance Agreement, expected by the end of May 2016, the signing of a shareholders agreement with the current Mitsubishi Group shareholders of MMC and regulatory approvals. It is expected to close by the end of the year.

For more information, visit VisionNissanMitsubishi.com.