Mitsubishi Motors may bow out of Nissan-Honda merger talks, reports Reuters at Investing.com
Investing.com- Japan’s Mitsubishi Motors Corp . (Tyo 🙂 Thinking about giving up on the planned merger between Nissan Motor Co., Ltd. (Tyo 🙂 and Honda (NYSE:) Motor Co Ltd (Tyo:), Reuters reported on Friday citing unnamed sources.
Mitsubishi plans to remain on the list of self-maintaining cooperative relationships with both Nissan (OTC 🙂 and Honda, according to the report.
Mitsubishi’s potential retreat from high-profile merger talks weighed heavily on the company’s shares, which fell more than 6% in early Friday trade. Nissan shares also fell 1.6%. Mitsubishi’s decision was expected this month as the merger framework develops, according to a Reuters report.
In December, Nissan and Honda announced plans to form a joint holding company, targeting completion of discussions by June 2025 and implementation by August 2026. The merger aims to create the world’s third-largest carmaker, producing 7.4 million vehicles a year.
Mitsubishi Motors (OTC 🙂 issued a statement acknowledging media reports about its stance on integration, but stressed that no official decisions had been made. The company said it was exploring various options, according to the report.
According to the Yomiuri Shimbun newspaper, Mitsubishi’s concerns center on its ability to influence decisions within the proposed holding, given its relatively small size. The report also stated that Mitsubishi plans to prioritize its growth in Southeast Asia, maintaining its independent structure for the foreseeable future.
The development deals with uncertainty over a potential merger, with Mitsubishi’s smaller stake raising questions about the strategic alignment of all parties involved.
