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.