Mitsubishi Opts Out of Honda-Nissan Merger, Chooses Collaboration Instead

70
1
Mitsubishi Opts Out of Honda-Nissan Merger, Chooses Collaboration Instead

Mitsubishi Opts Out of Honda-Nissan Merger

Mitsubishi Motors Corporation has decided against joining the proposed management integration between Honda Motor Co. and Nissan Motor Co. The company fears being marginalized within the larger entity and plans to explore collaboration with the two automakers on a project-by-project basis while remaining under the umbrella of its largest shareholder, Nissan.

Mitsubishi's decision stems from concerns about its market capitalization, which is significantly smaller than that of Honda and Nissan. Joining the holding company directly would limit the number of board members it could appoint, potentially leading to a diminished voice within the organization.

Furthermore, delisting from the stock exchange to join the holding company could effectively exclude Mitsubishi Motors from the Mitsubishi Group, a scenario that the group is not willing to accept.

Despite opting out of the merger, Mitsubishi remains open to collaborating with Honda and Nissan on specific projects. The company will continue to monitor the integration process and make a final decision after considering the intentions of the Mitsubishi Group.

Meanwhile, the management integration talks between Honda and Nissan continue, with the goal of finalizing details of Nissan's restructuring plan by the end of January. The plan includes cutting 9,000 jobs. However, Honda Motor President Toshihiro Mibe has acknowledged the possibility that the integration may not materialize. Negotiations towards a June agreement are expected to face challenges along the way.