Japanese carmaker Nissan today announced that it will acquire a 34 percent equity stake in Mitsubishi Motors, which now makes it the controlling shareholder. The stake will be acquired at a cost of 237 billion yen ($2.18 billion or Rs 14,490 crore). The move comes at a time when Mitsubishi Motors has been hit by a scandal involving manipulation of fuel economy figures.

Nissan already has a manufacturing partnership with Mitsubishi, and both the carmakers have collaborated for the past five years. Both the Japanese carmakers have agreed to cooperate in areas like purchasing, common vehicle platforms, technology-sharing and joint plant utilization, which could help them save a significant sum of money.

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

The transaction is expected to close by the end of 2016 with a definitive agreement expected to be signed by the end of May. Nissan also has stakes or signed partnerships with other automotive groups including Daimler, and Russian automobile manufacturer, AvtoVaz.

As of now it is unclear how the move will impact the operations of Nissan and Mitsubishi in India, where both the carmakers are present by way of their own manufacturing and distribution.