Investing.com– Japan’s Mitsubishi Motors Corp . (TYO:7211) is considering opting out of a planned merger between Nissan Motor Co., Ltd. (TYO:7201) and Honda (NYSE:HMC) Motor Co Ltd (TYO:7267), Reuters reported on Friday citing unnamed sources.
Mitsubishi plans to remain listed independently while maintaining cooperative relationships with both Nissan (OTC:NSANY) and Honda, the report stated.
The potential withdrawal of Mitsubishi from the high-profile merger talks weighed heavily on the company’s shares, which dropped more than 6% in early Friday trade. Nissan’s stock also declined 1.6%. Mitsubishi’s decision was expected this month as the merger framework evolves, according to the 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 establish the world’s third-largest automaker, producing 7.4 million vehicles annually.
Mitsubishi Motors (OTC:MMTOF) issued a statement acknowledging media reports about its stance on the integration but emphasized that no official decisions had been made. The company said it was exploring various possibilities, the report stated.
According to the Yomiuri Shimbun newspaper, Mitsubishi’s concerns center on its ability to influence decisions within the proposed holding company, given its relatively small size. The report also noted that Mitsubishi plans to prioritize its growth in Southeast Asia, maintaining its independent structure for the foreseeable future.
The development casts uncertainty on the potential merger, with Mitsubishi’s smaller stake raising questions about the strategic alignment of all parties involved.
