Remember when Honda and Nissan announced they were in talks to merge, potentially bringing Mitsubishi into the fold? Well, it seems like the three-diamond brand might be having second thoughts.
According to a report by Yomiuri Shimbun, Mitsubishi seems to be content going its own way, focusing on its strong presence in Southeast Asia. This makes sense, considering Honda and Nissan are more focused on the US market.
However, Mitsubishi’s decision to remain independent may be motivated by more than just regional focus. The company believes that maintaining its current structure allows for greater flexibility and agility in decision-making, which is crucial as it aims to expand its share of the Southeast Asian market.
Additionally, despite being 34.01% owned by Nissan, Mitsubishi plans to remain on the Tokyo Stock Exchange while working with Honda and Nissan.
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If the merger between Honda and Nissan goes through, it would create the world’s third-largest automotive conglomerate. But without Mitsubishi, the conglomerate might have limited potential for expansion in the Southeast Asian market.
This brings the future of the Renault-Nissan-Mitsubishi Alliance into question. With Nissan potentially merging with Honda, what will happen to the alliance? Renault also owns shares in Nissan, and this might create potential conflicts of interest.
Adding another layer of complexity, Carscoops reports that Honda has asked Nissan if they could acquire Renault’s 35.7% stake in Nissan, valued at a hefty USD3.6 billion (approx. RM157 billion).
However, with Nissan currently facing financial challenges, it’s unclear whether they have the resources to buy back their own shares from Renault.
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