The U.S. automaker will sell its Japanese luxury brand to Mazda in a $1.9 billion deal, the Japanese automaker said Monday.
The deal was announced by Toyota President Masayoshi Son as part of an effort to strengthen its relationship with Mazda.
It will also provide Mazda with “a major global market,” Son said in an interview with Bloomberg TV.
The Japanese carmaker’s first-ever sale of a major brand in its 35-year history, the deal includes more than 10 percent of Mazda’s market share in the U.K., the largest market for Toyota’s brand in the world.
Son said the deal will give the Japanese manufacturer “a clear and decisive foothold” in the global auto market.
“We have always been committed to investing in the Mazda brand, but this transaction is significant because it will enable us to bring our brand and our people to the world,” Son told Bloomberg.
“It will be a great asset for Mazda in the long run.”
The deal comes amid a rising tensions between Japan and the U.-S.
over Tokyo’s territorial claims in the East China Sea and the South China Sea.
The two countries’ trade and diplomatic relations have been tense in recent months, with the U-S.
considering tariffs on Japanese cars made by Japanese automakers.
Son has said that if Japan’s automakers were to make cars in the United States, that would hurt their competitiveness in the auto market.
The $1 billion deal also includes a $500 million payment to a U.N. human rights tribunal to settle a lawsuit brought by an Indonesian man who alleged his rights were violated by the Japanese government in the 1980s after he was detained in a Japanese prison.
The new deal also covers a separate lawsuit by the Indonesian group, which says the U,S.
government used torture and other ill-treatment to detain the group’s leader, a former police officer named Siti Aisyah.
The U.J.A. said that Siti’s wife and other family members are among the plaintiffs in the lawsuit, which was filed in 2015.
The case is not the first time that the U