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Reports Suggest Mitsubishi Will Not Join Honda and Nissan Merger

Mitsubishi Exits Honda and Nissan Merger

A month ago, Honda and Nissan took a significant step toward collaboration by signing a memorandum of understanding to form a new holding company. This potential merger was initially announced without including Mitsubishi. However, a separate document issued on the same day mentioned that Mitsubishi had signed a second memorandum of understanding, signaling its intent to explore its role in this landmark collaboration between Honda and Nissan.

Mitsubishi Exits Honda and Nissan Merger

Recent developments, however, indicate that Mitsubishi may no longer be part of this ambitious plan. According to Japan’s Yomiuri newspaper, Mitsubishi has decided to withdraw from the merger. Although Mitsubishi was reportedly evaluating its participation in the potential Honda and Nissan holding company, it now appears to favor remaining an independent automaker.

In response to these reports, Mitsubishi issued a statement confirming that it is still reviewing its options but stopped short of either verifying or disputing the Yomiuri claims. The complex corporate ties between Honda and Nissan, along with other stakeholders, further complicate the situation. Currently, Nissan holds a 24% share in Mitsubishi, while Renault owns 15% of Nissan and vice versa. Despite this interconnected structure, Bloomberg reports that Honda and Nissan are keen on excluding Renault from the merger. Following the announcement on December 23, 2024, Renault stated that it would carefully consider all possibilities in alignment with its shareholders’ interests. Mitsubishi’s final decision regarding its involvement with Honda and Nissan is expected early next month, with a definitive update likely to come during its third-quarter earnings report on February 3.

honda and nissan merger excludes mitsubishi 2
Mitsubishi Lancer Evolution

Even if Mitsubishi decides to maintain its independence, the newly formed Honda and Nissan Holdings may still hold a stake in Mitsubishi, considering Nissan’s previous investments. Back in August 2024, Carlos Ghosn, the former chairman of Nissan and Renault, accused Honda of orchestrating a “disguised acquisition” of Nissan and Mitsubishi, claiming that Honda’s size and influence positioned it as the controlling force in this collaboration.

Meanwhile, Toyota has clarified that it has no role in discussions involving Honda and Nissan. Akio Toyoda, chairman of Toyota, stated that the company has never participated in merger talks. He further explained that antitrust regulations would render such large-scale mergers infeasible. Toyota’s considerable investments, including a 20% stake in Subaru, 5% stakes in Mazda and Suzuki, and full ownership of Daihatsu, make additional merger attempts even more impractical.

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