Mitsubishi President Takao Kato is considering joining the business integration talks between Honda and Nissan.

Japanese carmakers Honda and Nissan are discussing a merger with Mitsubishi Motors in a bid to counter fierce global competition in the field of electric vehicles, the companies said in a statement released after an emergency press conference on Monday.

Nissan Motor (NSANY) and Honda Motor (HMC) have officially begun talks to merge by 2026 as Japan’s automakers seek an edge over tough Chinese rivals and Tesla (TSLA).

Honda, Nissan, and Nissan's partner Mitsubishi are moving forward with a "business integration" to keep the Japanese automakers competitive

Honda Motor Co. and Nissan Motor Co. plan to merge under a holding company with the top executives chosen by Honda in a historical reshuffling of Japan’s auto industry meant to keep the country’s second- and third-largest players competitive amid a global onslaught of new competitors and technologies.

Nissan Motor Corporation, Honda Motor Company, and Mitsubishi Motors Corporation are shaking up the auto industry by considering a potential merger.

Honda did not respond to Business Insider's request for comment. Honda CEO: Merger is not a Nissan rescue. Honda's shares had initially fallen when news first broke of the merger

Key Takeaways Moody's gave a positive review of the potential merger of Honda and Nissan.Analyst Dean Enjo wrote that the deal would be "credit positive" if done correctly.Former Nissan CEO Carlos Ghosn warned Nissan would face "carnage" if the combination went through.

The Renault Group holds almost 36% of Nissan, but its role in the merger remains unclear. The French group said it’s considering “all options” as talks between the Japanese brands intensify. Former Nissan and Renault boss Carlos Ghosn suggests Renault might sell its shares to Honda.