New Delhi: Nissan Motors and Ashok Leyland Ltd have entered a new agreement that brings both companies to a new phase in business. Nissan has decided to sell its entire stake in 3 joint venture companies formed in 2008, to Ashok Leyland.

The joint ventures focusing on technology development and manufacturing of power trains and vehicles, will become wholly-owned by Ashok Leyland under the agreement signed on September 7, 2016 by senior executives of both companies.

The firms, though declined to disclose details of the financial implications, had invested about Rs 1,000 crore as equity between them.

Under a licensing agreement, Ashok Leyland will continue building light commercial vehicles Dost and Partner, based on Nissan’s design, engineering and technology. “We have decided to acquire Nissan’s stake in the three joint venture companies, and this will help focus our efforts to concentrate on core business initiatives and customers. We will continue our relationship with Nissan under the new arrangement,” said Ashok Leyland MD Vinod Dasari.

The companies have agreed to continue a deal to procure made-in-India parts to Nissan and the process is expected to be concluded later this year.