DaimlerChrysler AG and Mitsubishi Motors Corp. announced Monday a capital and business alliance that will create the world's third-largest auto group in terms of sales while giving the world's fifth-largest automaker a controlling stake in Mitsubishi Motors.
DaimlerChrysler will acquire a 34 percent stake in the Japanese automaker for 2.1 billion euros (225 billion yen) through the purchase of new shares to be allocated by Mitsubishi. Three DaimlerChrysler officials will sit on the board of Mitsubishi Motors, which will be reduced from the present 36 members to 10.
Under Japanese law, an equity stake of 34 percent gives the shareholder the right to veto proposals concerning company management.
Despite taking about one-third of MMC's board members, DaimlerChrysler will have no board members with the right to represent Mitsubishi Motors, the two companies said, signaling that Mitsubishi will remain an independently managed company.