Sources familiar with the situation have indicated that Nissan Motor Co is negotiating to acquire a one-third interest in beleaguered Mitsubishi Motors Corp. in exchange for a $1.8 billion (200 billion yen) investment.

Mitsubishi has been embroiled in a fuel economy data scandal that first surfaced on April 20. The company supplies Nissan with the Dayz and Dayz Roox mini vehicles for the Japanese market.

Members of the boards of Nissan and Mitsubishi will meet separately on Thursday to determine the financial and operational terms of the arrangement. If the deal is approved, Nissan would become Mitsubishi’s largest shareholder.

Details of the talks were revealed shortly after Mitsubishi announced that it had sufficient cash reserves to ride out the scandal. At that time, Mitsubishi also indicated that non-compliant data may have been used when calculating the fuel economy ratings of even more of its models.

Since the scandal erupted, Mitsubishi’s market share has dropped close to 42 percent or the equivalent of $3.0 billion.

Update: Nissan agreed to acquire a 34 percent stake in Mitsubishi on Thursday for $2.2 billion (237.4 billion yen).