Nissan confirms talks for tie-up with Mitsubishi

Nissan Motor confirmed Thursday that it was in capital tie-up talks with scandal-hit Mitsubishi Motors, as local media reported that the deal would be an effective acquisition.

"Nissan and Mitsubishi are discussing various matters including capital cooperation, but nothing has been decided," Nissan said in a brief statement.

"We plan to discuss this matter and others at a regularly scheduled board of directors meeting today," it said.

In a separate statement, Mitsubishi Motor also said it would discuss the issue at its board meeting later in the day.

The announcements followed Japanese media reports that the two firms were in the final stages of negotiations for Nissan to buy a 34-percent stake in scandal-hit Mitsubishi.

The deal, reported to be worth $1.8 billion, would amount to an effective acquisition by Nissan Motors, making it the top shareholder ahead of Mitsubishi Heavy Industries, which holds a 20-percent stake, according to several major local media, including national broadcaster NHK.

Mitsubishi is attempting to turn itself around after a bombshell admission last month that it has been cheating on fuel tests for years.

The scandal -- reported to cover almost every model sold in Japan since 1991 -- also includes mini-cars produced by Mitsubishi for Nissan as part of a joint venture.

It was Nissan that first uncovered the problems with Mitsubishi's fuel economy data, but Mitsubishi has said it had no part in the cheating.