TOKYO, JAPAN: Mitsubishi Motors is reportedly considering opting out of a planned business merger with Nissan Motor and Honda Motor, according to sources who spoke to Reuters on Friday.
The company plans to stay listed on the stock exchange while continuing to work with both Nissan and Honda, said three anonymous sources.
According to Reuters, Mitsubishi Motors said media reports about its intended participation in the business integration framework being considered by Honda and Nissan were not based on its announcements.
The Yomiuri newspaper reported on Friday that Mitsubishi Motors might not join the planned merger as it worries it would have little say in management decisions if the merger proceeds, given its smaller size.
Mitsubishi Motors’ shares fell more than 6% in early trading on Friday, while Nissan’s shares dropped 1.6%.
The news follows Nissan and Honda’s announcement last year that they would begin formal talks on a merger. If successful, the merger would create the world’s third-largest automaker, with an annual output of 7.4 million vehicles.
In December, Nissan and Honda announced that they aim to finish talks by June 2025 and set up a joint holding company by August 2026, when both companies’ shares will be delisted.
With Nissan holding a 24% stake, Mitsubishi Motors was expected to decide by this month whether it would join the merger.
According to Yomiuri, Mitsubishi Motors will keep its current structure and focus on growing its Southeast Asian presence. /TISG
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