The deal is expected to be closed on July 1, Nissan said in a statement after it announced in February that it wanted to offload the division as part of a major restructuring drive. Terms of the deal were not disclosed. Both Nissan and IHI have dismissed a sale figure for the division given by the Nihon Keizai Shimbun of 40 billion yen as "speculation." "As the automotive and aerospace industries require an increasingly global focus, the deal will allow both companies to concentrate their technological and engineering resources on their core businesses," Nissan said.

The world's fifth largest carmaker is seeking to reverse a slump in sales and earnings by focussing on its core operations through restructuring announced last October under the control of French controlling share-owner Renault SA. "The sale of the aerospace division is one further step aimed at achieving lasting growth, improving profitability and reducing its debt," the Nissan statement said. Nissan, hit by driving vehicle sales in Japan, has warned its earnings in the fiscal year to last month could have been even worse than forecast in November, when it announced a big interim net loss.