JP Morgan is co-adviser to both Nissan and Renault on a ¥370bn (€3.35bn) deal in which the carmakers will take a large stake in each other without committing to a full merger.

The announcement of the deal is the first step to producing a fully integrated Franco-Japanese car maker. It will be the fifth-largest auto manufacturer in the world as a combined entity but the arrangement will maintain the two as separate companies. Each company will delegate long term strategic planning to Renault-Nissan BV, a Dutch registered joinly held company.