Nissan Motor said on Monday, after several months of constructive discussions, it had reached an important milestone on “defining new foundations” for its three way Alliance with Renault Group and Mitsubishi Motors, subject to final approval of their respective boards of directors.

Nissan said the aim was to strengthen ties within the Alliance and maximise value creation for all stakeholders with a three stage approach, which included:

Reloading the partnership with high value creation operational projects, consisting of key projects in Latin America, India and Europe, which would be deployed along three dimensions: markets, vehicles and technology.

Enhancing strategic agility with new initiatives that partners can join, with Nissan planning to become a strategic shareholder in Ampere, Renault’s recently established electric vehicle (EV) and software company.

A balanced governance and cross shareholding to foster accelerated operational efficiencies:

Nissan and Renault Group would retain a 15% cross-shareholding, with a lockup obligation, as well as a standstill obligation. They would both be able to freely exercise the voting rights attached to their 15% direct shareholding, with a 15% cap.

Renault Group would transfer 28.4% of Nissan shares into a French trust where the voting rights would be “neutralised” for most of the decisions, but the economic rights (dividends and shares’ sale proceeds) would still entirely benefit to Renault until such shares were sold.

Renault Group would instruct the trustee to sell the entrusted Nissan shares if commercially reasonable for Renault Group in a coordinated and orderly process, but it would have no obligation to sell the shares within a specific pre-determined period of time.

Nissan said these agreements were currently being finalised and the transaction remained subject to the approval of the boards of directors of Renault and Nissan, adding Alliance members plan to make an announcement immediately after the board approvals.