Will Proton Marry Perodua ???

While Proton, which needs to reduce excess capacity at its Tanjung Malim plant, wants a merger, Perodua is not keen.

The government will not force Proton Holdings Bhd and rival Perodua to merge as shareholders of both carmakers need to agree for it to happen, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

"There is a long spectrum involved ... at one end is loose cooperation and at the other, a merger, which has yet to be decided," he told reporters after announcing new development programmes for small businesses in Kuala Lumpur yesterday.

The government is the major shareholder of Proton via Khazanah Nasional Bhd while Japan's Daihatsu owns the majority of Perusahaan Otomobil Kedua Sdn Bhd's manufacturing arm.

While Proton, which needs to reduce excess capacity at its Tanjung Malim plant, wants a merger, Perodua is not keen.

"Several scenarios need to be discussed at this point such as vendor development and sourcing of components," Mustapa said, declining to elaborate.

"It is doable ... although it is still (in early stages)."

Proton and Perodua control 70 per cent of the country's passenger car market.

In December last year, the government did a third-party study on the merger prospect between the two companies.

Read more: 'Proton, Perodua free to decide' http://www.btimes.com.my/Current_News/BTIMES/articles/rup2504-2/Article/index_html#ixzz1C8V7ZfnX