Mitsubishi Motors has second thoughts on joining Nissan-Honda merger

Automaker to retains its identity while collaborating with the new post-merger entity

 

Mitsubishi Motors, a key partner of Nissan Motor, is reportedly considering not joining the planned merger between Nissan and Honda. 

 

Three sources familiar with the matter told Reuters that Mitsubishi Motors intends to remain a publicly listed company while continuing its cooperative relationship with both automakers.

 

Following this news, Mitsubishi Motors shares plummeted by 3.9% in early Friday trading, Nissan shares dipped by 0.7%, while Honda shares saw a slight decline of 0.1%.
  

The potential withdrawal of Mitsubishi Motors comes after Nissan and Honda announced last year that they would commence formal discussions on a merger, which could create the world's third-largest automotive group with an annual production capacity of 7.4 million vehicles.

 

Mitsubishi Motors, in which Nissan holds a 24% stake, was expected to make a decision regarding its participation in the merger by this month.

 

In a statement, Mitsubishi Motors acknowledged media reports on its intended participation in the proposed business integration framework but clarified that these reports were not based on official company announcements. The company said that it was currently evaluating various options and had yet to make a final decision.
  

Earlier on Friday, the Yomiuri newspaper reported that Mitsubishi Motors was considering opting out of the merger due to concerns that its relatively small size would limit its influence within the joint holding company.

 

Spokespersons for both Nissan and Honda referred to Mitsubishi Motors' statement when asked about the Yomiuri report.

 

Nissan and Honda have outlined their plans to complete their merger discussions by June 2025, with a holding company expected to be set up by August 2026. Upon the formation of the holding company, the shares of both  Nissan and Honda would be delisted.

 

According to the Yomiuri report, Mitsubishi Motors will maintain its current corporate structure and focus on expanding its market share in Southeast Asia.

(2025/01/24-00:00)