Mitsubishi Motors might bow out of Nissan-Honda merger talks, Reuters stories

Investing.com– Japan’s Mitsubishi Motors Corp . (TYO:7211) is contemplating opting out of a deliberate 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 stay listed independently whereas sustaining cooperative relationships with each Nissan (OTC:NSANY) and Honda, the report said.

The potential withdrawal of Mitsubishi from the high-profile merger talks weighed closely on the corporate’s shares, which dropped greater than 6% in early Friday commerce. Nissan’s inventory additionally declined 1.6%. Mitsubishi’s choice was anticipated this month because the merger framework evolves, in line with the Reuters report.

In December, Nissan and Honda introduced plans to type a joint holding firm, concentrating on completion of discussions by June 2025 and implementation by August 2026. The merger goals to determine the world’s third-largest automaker, producing 7.4 million autos yearly.

Mitsubishi Motors (OTC:MMTOF) issued a press release acknowledging media stories about its stance on the combination however emphasised that no official choices had been made. The corporate mentioned it was exploring numerous prospects, the report said.

In line with the Yomiuri Shimbun newspaper, Mitsubishi’s issues heart on its means to affect choices throughout the proposed holding firm, given its comparatively small dimension. The report additionally famous that Mitsubishi plans to prioritize its development in Southeast Asia, sustaining its unbiased construction for the foreseeable future.

The event casts uncertainty on the potential merger, with Mitsubishi’s smaller stake elevating questions concerning the strategic alignment of all events concerned.