Nissan Motor Co. and Renault SA said Monday they have formally agreed to make their mutual cross-shareholdings equal at 15 percent, in a deal that will radically change the decades-old capital alliance that created one of the world's biggest automaker groups.

Under the agreement, the French company will reduce its 43.4 percent stake in the Japanese automaker while Nissan will maintain its current stake in its alliance partner.

While Renault will allow Nissan more autonomy, the Japanese company will in turn hold an up to 15 percent stake in Ampere, a new electric vehicle company to be set up by the French carmaker. Another alliance partner Mitsubishi Motors Corp. will also consider investing in the new company.

The capital alliance dates back to 1999 when Renault became the top shareholder in Nissan, which was on the cusp of bankruptcy. Carlos Ghosn was sent from Renault to lead the overhaul.

But as Nissan recovered from the crisis, its officials have come to see the relationship as unequal, given its has larger vehicle sales than its French partner and its technological lead in EVs.

Mitsubishi Motors joined the alliance after Nissan acquired a 34 percent stake in it in 2016.

==Kyodo

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