TOKYO (AP) -- Renault SA agreed Saturday to buy a major stake in the troubled and debt-burdened Nissan Motor Co., the world's seven-largest automaker.
Renault Chairman Louis Schweitzer and Nissan President Yoshikazu Hanawa signed the agreement after the Japanese vehicle manufacturer's board approved it Saturday morning, said Nissan spokeswoman Kaori Tsuji.Tsuji said Schweitzer and Hanawa would hold a news conference later Saturday to announce details of the deal.
Renault's reportedly purchased Nissan stock valued at between $5 billion and $6.8 billion.
The reports say the stake is likely to be as high as 35 percent, which would make Renault the largest shareholder in Nissan, Japan's second largest carmaker.
Renault ranks 11th in the world in the production of cars and trucks, according to industry analysts at Ward's Automotive International.
Renault made a formal purchase offer to Nissan on March 16, after talks between Nissan and Germany's DaimlerChrysler broke down.
Nissan has sought a foreign partner to help it write off an estimated $18 billion in debt and return to profitability.