Mitsubishi Could Refuse to Join Planned Nissan-Honda Merger
Mitsubishi Motors, a minority partner of Nissan Motor, is considering not participating in the planned merger between Nissan and Honda, according to sources close to the matter who spoke with Reuters. Of true, that raises questions about the future of the Japanese and global automotive industry.
Three unnamed sources said that Mitsubishi Motors wished to retain its listed status while maintaining collaboration with Nissan and Honda. Nissan currently holds a 24-percent stake in Mitsubishi Motors, making it its largest shareholder.
Market impact
On Friday morning, Mitsubishi Motors shares fell by 6 percent in early trading, before limiting their losses to 3.9 percent at lunchtime. Nissan shares were down 0.7 percent, while Honda shares edged down 0.1 percent.
Nissan and Honda announced last year they were entering formal merger talks. If a deal goes through, it could create the world's third-largest automotive group, with an annual output of 7.4 million vehicles.
Reasons for the potential withdrawal
According to Japanese daily Yomiuri, Mitsubishi Motors is unsure of its ability to influence strategic decisions within the future holding company, given its relatively modest size. For the time being, the automaker prefers to focus on its development in Southeast Asia, a key market for the brand.