Japan's second-largest automaker Nissan has agreed to buy a 34 percent stake in its troubled smaller competitor, Mitsubishi Motors Corp (MMC).  The AU$3 Billion bet gives Nissan control of Mitsubishi, and solves a bunch of problems for both companies.

Mitsubishi Motors is mired in its third scandal in two decades after being caught playing fast and loose with Japanese regulators over fuel economy tests on mini-cars.  Even before that, the Red Diamond had been struggling to keep up in the Japanese domestic market and many of its international markets.  These have conspired to wipe more than AU$4 Billion off of its market value, driving stock prices down to just over $6 per share - a bargain.

For Nissan, it opens up new marketplaces in the places where Mitsubishi's low-cost cars are doing well - especially Southeast Asia, in countries like Thailand and the Philippines.  Mitsubishi and Nissan were already cooperating on development and manufacturing with a partnership dating back to 2011.

"This is a breakthrough transaction and a win-win for both Nissan and Mitsubishi Motors.  It creates a dynamic new force in the automotive industry that will cooperate intensively, and generate sizeable synergies," said Nissan CEO Carlos Ghosn in a statement.  "We will be the largest shareholder of MMC, respecting their brand, their history and boosting their growth prospects."

The most difficult part of the deal will take place on the football pitch.  Mitsubishi Motors owns half or so of the Urawa Red Diamonds, a J-League football team located in Saitama outside Tokyo.  The Reds are phenomenally popular with a die-hard fan base.  Nissan has a three-quarters stake in the rival J-League team, the Yokohama F. Marinos.  Article 25, Clause 5 in the J-League rule book specifically deals with anti-trust issues, stating "that a company with a controlling stake in one club cannot have a direct or indirect controlling stake in another club".