Toyota Tsusho Corp., a Nagoya-based trading firm, will inject 7.5 billion yen into troubled rival Tomen Corp. and form a business tieup, top executives of the two firms announced on Tuesday.

As part of its restructuring program revealed last month, Osaka-based Tomen Corp. plans to raise 30 billion yen through a third-party allotment of new shares, and Toyota Tsusho, an affiliate of Toyota Motor Corp., will acquire an equity stake worth 7.5 billion yen.

If realized, Toyota Tsusho's stake in Tomen Corp. will be around 10 percent, topping Tokai Bank as the firm's largest shareholder. However, the stake would be no more than 15 percent, said Toyota Tsusho president Hiroshi Chiwa.

"Our core business is with the Toyota group. Other than increasing such business, we intend to expand into non-automobile business. Tomen's focus under its rehabilitation program is in line with the direction we are seeking," Chiwa said.

Under the three-year rehabilitation plan, Tomen hopes to focus on five main areas, such as electric power and information processing.

At the same time, Tomen has asked its main creditor banks to forgive about 200 billion yen in debt, and Chiwa cited the financial institutions' consent as one of conditions of Tuesday's deal.

In addition to the proposed capital tieup, the two firms also agreed to a business tieup, though details had not been discussed ahead of Tuesday's announcement, according to the firms.