(Corrects description of Nissan's ( NSANF ) former stake in Indian business in paragraph 5 to majority, not minority)

PARIS (Reuters) -Automakers Renault and Nissan ( NSANF ) said on Monday they had agreed to further amend their long-standing partnership to allow for a reduction in their cross-shareholdings to 10%, down from 15% previously.

The move comes a day before Ivan Espinosa takes over as CEO of the struggling Japanese carmaker, under pressure to significantly boost its competitiveness.

Under the new terms, Nissan ( NSANF ) will also be released from its commitment to invest in Renault's electric vehicle unit Ampere, in which it had pledged to invest 600 million euros ($648.96 million).

"As a long-time partner of Nissan ( NSANF ) within the alliance and as its main shareholder, Renault Group has a strong interest in seeing Nissan ( NSANF ) turn around its performance as quickly as possible," said Renault CEO Luca de Meo in a statement.

Renault also announced its intention to buy out Nissan's ( NSANF ) majority stake in their joint Indian business, known as Renault Nissan Automotive India Private Ltd (RNAIPL), with completion of the deal expected by the end of the first half.

The French automaker confirmed its forecast of free cash flow of at least 2 billion euros in 2025, despite an impact of approximately 200 million euros from acquiring Nissan's ( NSANF ) stake in the India business.

"Pragmatism and business-oriented mindset were at the core of our discussions to identify the most effective ways of supporting their recovery plan while developing value-creating business opportunities for Renault Group," added De Meo in the statement.

($1 = 0.9246 euros)