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Nissan Motor Co. said Wednesday that it will sell all of its 1.5% equity stake in German auto giant Daimler AG.

The announcement came after Nissan's French partner, Renault SA, unveiled in March its decision to entirely sell its holdings of Daimler shares.

Nissan will sell its Daimler stake to institutional investors for a total of about ¥151 billion.

The Yokohama-based automaker will use the funds for investment for promoting the electrification of its vehicles and other projects.

The three companies in 2010 formed a capital and business tie-up, which called on Nissan and Renault to each obtain an equity stake of about 1.5% in Daimler, and on the German firm to acquire a 3.1% stake each in the two partners. The agreement also called for the three firms' cooperation in a wide range of areas, including joint development of compact cars and electric vehicles.

The three-way partnership was led by former Nissan Chairman Carlos Ghosn.

The three companies jointly constructed a plant in Mexico and worked to develop new engines. But no major result has come out of the partnership in recent years, after Mitsubishi Motors Corp. joined the alliance of Nissan and Renault.

Amid the growing trend to shift away from gasoline vehicles both at home and abroad to realize a decarbonized society, Nissan aims to have electrified vehicles account for all of its new vehicles launched in major markets in the early 2030s.

With the sale of the Daimler stake, Nissan also seeks to improve its financial health, as it expects to report a huge consolidated net loss for the second straight year in fiscal 2020, which ended in March this year, and sees the need to strengthen the development new electric vehicles and enhance its e-Power hybrid vehicle technology.

Nissan and Renault plan to keep their business cooperation with Daimler intact after they sell their Daimler stakes. The focus now will be on whether Daimler will release its stakes in Nissan and Renault, industry analysts said.

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