Mitsubishi Motors, a junior partner of Nissan Motor, is reportedly considering staying out of the planned merger between Nissan and Honda Motor, according to sources cited by Reuters.
While Mitsubishi Motors plans to maintain its cooperative relationship with both automakers, the company aims to remain listed as an independent entity, three insiders revealed under the condition of anonymity.
The potential decision has impacted Mitsubishi Motors’ shares, which fell 3.9% by midday after an initial slump of over 6% during early trading on Friday. Shares of Nissan dropped by 0.7%, while Honda’s shares slipped 0.1%.
The merger between Nissan and Honda, announced last year, is projected to create the world’s third-largest auto group, boasting an annual output of 7.4 million vehicles. Mitsubishi Motors, in which Nissan holds a 24% stake, anticipated deciding by this month whether to join the tie-up.
In an official statement, Mitsubishi Motors addressed media speculation about its involvement in the merger, clarifying that the reports were not based on official information from the company. The automaker confirmed it is exploring various possibilities but has not yet reached a decision.
The Yomiuri newspaper earlier reported that Mitsubishi Motors may refrain from joining the merger due to concerns about its limited ability to influence management decisions within the proposed joint holding company, given its smaller scale.
When approached for comments on the Yomiuri report, spokespeople for Nissan and Honda referred to Mitsubishi Motors’ statement without elaborating further.
Nissan and Honda announced in December 2023 their intention to finalize merger talks by June 2025, with plans to establish a joint holding company by August 2026. The merger would result in the delisting of both Nissan and Honda shares.
For now, Mitsubishi Motors appears poised to focus on strengthening its market presence in Southeast Asia while maintaining its current structure, according to the Yomiuri report.