Proton LogoProton Holdings Berhad and Edaran Otomobil Nasional Berhad is said to be in talks for a merger between EON and Proton’s own Proton Edar distribution arm.

This would create a single Proton distributor, which would reduce competition for Proton car sales as there would not be any competition between Edar and EON anymore.

EON does not just sell Proton cars in Malaysia. It also owns 48% of Mitsubishi Motors Malaysia Sdn Bhd, and sells Mitsubishi cars as well. EON subsidiaries also sell Volkswagen and Audi cars.

Late last month, there was a proposed voluntary withdrawal of EON from the Bursa Malaysia main board. HICOM Holdings Berhad which held 79.05% of EON at that time made a general offer to acquire the approximately 52 million shares it did not own at RM2.10 each. Delisting is expected to be completed by Q3 2008.