RENAULT has exercised its rights to increase its stake in Japanese car firm Nissan.

Renault originally announced plans to increase its share in the company from 36.8 per cent to 44.4 per cent in October last year, while Nissan took a 15 per cent stake in Renault.

That deal was completed yesterday for a total price of £1.1bn. It is the first stage in strengthening the strategic alliance between the two companies which has led to the creation of Renault-Nissan BV.