RSS Honda, Mitsubishi Confirm No Decisions Made About Collaboration Between Them And Nissan; Stocks Move

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 RSS Honda, Mitsubishi Confirm No Decisions Made About Collaboration Between Them And Nissan; Stocks Move

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Honda Motor Co., Ltd. (HMC) and Mitsubishi Motors Corp. (MMTOF.PK) have stated on Wednesday that recent media reports about the start of business integration discussions with Nissan Motor Co., Ltd. (NSANF.PK, NSANY.PK) do not originate from any official announcements by the companies.

On Tuesday, various media outlets speculated that these companies were engaging in initial talks regarding a possible merger aimed at enhancing competition within the electric vehicle market. It was suggested that Honda was exploring several strategic avenues, including a potential merger, capital alliance, or establishing a holding company.

Following this speculation, Honda Motor's shares in Tokyo dipped by approximately 3.6%, trading at 1,238.00 yen. In contrast, shares of Nissan Motor surged by about 23.7%, reaching 417.60 yen, while Mitsubishi Motors' shares increased by 20% to 487.20 yen.

Both Honda and Mitsubishi have responded to these reports by reiterating that they are exploring various avenues for future collaboration as previously communicated in March and August of this year. However, they emphasized that no definitive decisions have been made at this point.

The companies assured stakeholders that any updates will be communicated at the appropriate time.

In March 2024, Honda and Nissan announced the signing of a memorandum of understanding to initiate a feasibility study for a strategic partnership, focusing on vehicle electrification and advanced technologies. By August, Honda, Nissan, and Mitsubishi agreed to collaboratively explore a framework to further advance automobile intelligence and electrification in line with the prior agreement between Nissan and Honda.

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