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Nissan Strengthens Alliance with MMC Stake

Tokyo – Oct. 20 – Mitsubishi Motors joined the Renault-Nissan Alliance after completion of a 237 billion yen investment by Nissan.

The equity investment makes Nissan the largest shareholder in MMC with a 34 percent stake.

Nissan will provide strategic and operational support to MMC.

Nissan CEO Carlos Ghosn has been nominated to become Chairman of the Board of MMC, joined by three other Nissan-nominated directors.

“We are committed to assisting Mitsubishi Motors as it rebuilds customer trust,” said Ghosn. “This is a priority as we pursue the synergies and growth potential of our enlarged relationship.”

MMC CEO Osamu Masuko requested that Nissan provide a senior executive to join the company’s executive committee, and Trevor Mann, currently Nissan’s Chief Performance Officer, will become Chief Operating Officer of MMC.

The three largest institutional shareholders in MMC – Mitsubishi Heavy Industries, Mitsubishi Corporation and The Bank of Tokyo-Mitsubishi UFJ – welcomed Nissan’s investment and pledged its support for the board nominees.

Nissan and MMC will begin cooperating on a wide-ranging synergy program, building on a five-year alliance in kei-cars between the companies.

Ghosn predicted that through its partnership with MMC, Nissan would target synergy benefits worth 24 billion yen in fiscal year 2017, rising to 60 billion yen in fiscal year 2018 and beyond.

The gains will contribute to increased earnings per share worth an estimated 4 yen per share in fiscal year 2017 and 10 yen per share in fiscal year 2018 – on top of any earnings accretion linked to Nissan’s overall shareholding in Mitsubishi Motors.

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