Honda CEO Mibe on Monday said some of the company’s shareholders may feel that the deal would represent Honda supporting Nissan, but noted the merger was “based on ... question,” Wells added. Shares of Renault closed 1.2% higher on Monday.

Japanese automakers Honda and Nissan have announced plans to join forces, forming world’s third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels.

Honda and Nissan have announced official plans to merge.The agreement seeks to consolidate a wide range of resources from platform sharing to supply chain systems in order to bolster the position of Japanese automakers in a rapidly evolving automotive market dominated by electrification and ongoing industry consolidation.