The Honda-Nissan Merger Won't Include Mitsubishi: Report (www.autonews.com)

A month ago, Honda and Nissan signed a memorandum of understanding to explore a potential mega-merger that would create a single new holding company. Although the joint press release didn’t include Mitsubishi, a separate document released the same day mentioned a second MoU signed by all three Japanese brands. Mitsu said it would explore its “participation, involvement, and synergy sharing” concerning the potential Honda-Nissan merger.

However,

 now cites Japanese newspaper Yomiuri alleging Mitsubishi has decided to opt out of a merger that would create one of the largest car companies in the industry. According to the report, Mitsubishi had considered joining Honda and Nissan in the newly formed holding company, but it apparently decided to continue to ride solo. Consequently, it appears that Mitsubishi prefers to remain independent.

Mitsubishi has since issued a statement. It neither confirmed nor denied the report, only saying it’s still evaluating options. The corporate situation is somewhat complicated, considering Nissan is the largest shareholder, with a 24% share in Mitsubishi. Then there’s Renault, which holds a 15% share in Nissan, and vice versa. However, Bloomberg reports that Honda doesn’t want Renault to be involved in the merger. When the Honda-Nissan joint announcement was made on December 23, 2024, Renault only said that it would “consider all options based on the best interest of the Group and its stakeholders.”

Early next month, Mitsubishi is expected to reveal its decision about how it stands regarding the Honda-Nissan merger, whether it’s in or out. The critical announcement could be made on February 3 during a presentation on its fiscal third-quarter earnings. Even if Mitsubishi decides to continue as an independent automaker, the upcoming Honda-Nissan holding company could still own a stake, given the preexisting relationship between Nissan and Mitsubishi.

Former Nissan and Renault supremo Carlos Ghosn, known for speaking his mind, declared in August 2024 that Honda wants to carry out a “disguised takeover” of Nissan and Mitsubishi. He argued that since Honda is larger than the other two domestic brands, it puts the company in the “driver’s seat” to take control.

What about Toyota? Chairman Akio Toyoda said the world’s best-selling automaker was never involved in the merger talks. Due to anti-monopoly laws, the former CEO said an even larger merger wouldn’t have been possible anyway. Considering Toyota’s 20% stake in Subaru, 5% in Mazda, and another 5% share in Suzuki, that would’ve been a corporate nightmare to manage, especially since Toyota also fully owns Daihatsu.

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