- Mitsubishi has decided to opt out of a merger that would create one of the largest car companies in the industry.
Mitsubishi will not join the alliance of Honda and Nissan, for which the two Japanese carmakers signed a memorandum of understanding to create a single new holding company a month ago. While initially, Mitsubishi said that it would explore its participation, involvement, and synergy sharing concerning the potential Honda-Nissan merger, now it has decided to opt out of the alliance.
Japanese newspaper Yomiuri has reported that Mitsubishi has decided to opt out of a merger that would create one of the largest car companies in the industry. The Japanese carmaker had considered joining Honda and Nissan in the newly formed holding company but lately decided to continue to remain independent. After the report was published, Mitsubishi issued a statement, where it neither confirmed nor denied the news. It only said that the company is still evaluating options.
Honda-Nissan merger: A complicated situation
However, the corporate dynamics are somewhat complicated, considering Nissan is the largest shareholder in Mitsubishi with a 24 per cent stake. On the other hand, French automaker Renault holds a 15 per cent stake in Nissan, and vice versa. Bloomberg reports that Honda doesn’t want Renault to be involved in its alliance with Nissan. When the Honda-Nissan joint announcement was made on December 23 last year, Renault said that it would consider all options based on the best interest of the group and its stakeholders.
Also Read : Upcoming cars in India
Mitsubishi is now expected to reveal its decision on whether to join or not in the Honda-Nissan merger early next month. Interestingly, even if Mitsubishi decides to continue as an independent carmaker, the Upcoming Honda-Nissan holding company could still own a stake in it, given the pre-existing relationship between Nissan and Mitsubishi.
Earlier, former Nissan and Renault boss Carlos Ghosn said in August 2024 that Honda wanted to carry out a disguised takeover of Nissan and Mitsubishi. He argued that since Honda is larger than the other two Japanese brands, it puts the company in the driver’s seat to take control.
Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.
First Published Date: 26 Jan 2025, 11:05 AM IST
