TOKYO (dpa-AFX) - Honda Motor Co., Ltd. (HMC) and Mitsubishi Motors Corp. (MMTOF.PK) Wednesday confirmed that the latest media reports about beginning discussions of a business integration between them and Nissan Motor Co., Ltd. (NSANF.PK, NSANY.PK) are not based on their announcement.
Earlier, on Tuesday, several media reported that these companies were in preliminary talks about a possible merger to better compete in the electric vehicle market, and that Honda was exploring various options, including a merger, capital alliance, or forming a holding company.
Following the news, Honda Motor shares in Tokyo are losing around 3.6 percent to trade at 1,238.00 yen. However, Nissan Motor shares are jumping around 23.7 percent to trade at 417.60 yen, and Mitsubishi Motors shares are climbing 20% to trade at 487.20 yen.
Responding to these reports, both Honda and Mitsubishi, in their respective statements, noted that they are considering various possibilities for future collaboration, as announced in March and August of this year, but no decisions have been made so far.
The companies said they will inform all stakeholders updates, if any, at the appropriate time.
In March 2024, Honda and Nissan announced that they signed a memorandum of understanding, under which they would begin a feasibility study of a strategic partnership in the fields of vehicle electrification and intelligence.
In August, Honda, Nissan and Mitsubishi agreed to jointly discuss a framework for further intelligence and electrification of automobiles based on the agreement signed by Nissan and Honda in March.
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