Japan's Mitsubishi Motors, a junior partner of Nissan Motor, is considering not joining a planned business merger between Nissan and Honda Motor, sources told Reuters on Friday. Mitsubishi Motors plans to remain listed while continuing its cooperative relationship with both companies,

As talks between the automakers continue, analysts say a combination makes sense but may face hurdles, including short-term financial hardship.

Honda Motor Co.’s plan to absorb Nissan Motor Co. is rapidly deteriorating after disagreements over the inherent power imbalance between the two legacy automobile brands led to a deadlock.