Renault SA of France and its partner, Nissan Motor Co., announced Wednesday a business and capital tieup agreement with Germany's Daimler AG that will enhance cooperation in development of compact cars and environmental technology.
The move will create the world's third-largest automotive group, trailing in combined sales behind the Volkswagen AG-Suzuki Motor Corp. alliance and the Toyota Motor Corp. group.
Under the three-way deal, Renault and Nissan will obtain combined stakes of 3.1 percent in Daimler, while the German automaker will take similar stakes in each of the partners.
Renault Chief Executive Officer Carlos Ghosn, who concurrently serves as Nissan president, projected that the tieup will generate at least 2 billion euro in synergies for Renault and Nissan over the next five years through cost reductions and revenue growth.