Nissan Motor and Mitsubishi Motors confirmed on Thursday they were discussing a possible capital tie-up, after reports that the former was looking to take a roughly one-third stake in its scandal-hit rival.
"Nissan and Mitsubishi are discussing various matters including capital cooperation, but nothing has been decided," the two Japanese automakers said in separate statements. They added that their boards of directors were meeting in separate meetings on Thursday to discuss the matter.
Nissan is in advanced talks to take about a one-third stake in Mitsubishi Motors with a 200 billion yen ($1.85 billion) investment, as Mitsubishi struggles with a fuel-economy data scandal, two people familiar with the matter said.
The Tokyo Stock Exchange said on Thursday that shares in Mitsubishi Motors were suspended, as reports of the talks emerged.
If the 200 billion yen deal goes through, Nissan, Japan's second-largest automaker by sales, would become the largest single shareholder of the much smaller Mitsubishi Motors, which admitted last month that it had supplied Nissan with mini-vehicles with overstated mileage levels.