Hino Motors, Ltd. (“HINO”) and Mitsubishi Fuso Truck and Bus Corporation (“MFTBC”) reached a final agreement on January 10, 2026, with the aim of completing their business integration by April 1 of the same year. 

Under the structure of this merger, Toyota Motor Corporation (“Toyota”) and Daimler Truck AG (“Daimler Truck”) will each invest 25% to establish a holding company, “AIB Ltd.,” which will, in turn, hold 100% of the shares of both HINO and MFTBC. 

TFTC Review Decision 

The Taiwan Fair Trade Commission (“TFTC”) deliberated on this merger case during its commission meeting on January 14, 2026. Based on Article 13, Paragraph 1 of the Fair Trade Act, and having considered the impact on competition in relevant markets alongside the overall economic benefits, the TFTC resolved not to prohibit the merger. 

Key Points of Review and Rationale 

The participating parties primarily sell commercial vehicles such as “heavy-duty trucks,” “light-duty trucks,” and “heavy-duty buses,” placing them in a horizontal competitive relationship. While the change in market share for “light-duty trucks” post-merger is not significant, HINO and MFTBC ranked first and second, respectively, in the “heavy-duty truck” market prior to the merger. Both are also key players in the “heavy-duty bus” market. 

Regarding these changes in market structure, the TFTC comprehensively considered the following factors and determined that the merger would not create a significant competition-restraining effect on the structure or competitive status of the Taiwan market: 

1. Purpose of Merger and Operational Independence: The primary purpose of this merger lies in joint development, procurement, and production activities within the Japan region. Post-merger, the business entities and brands of each participating party will continue to exist independently, and the total number of brands in the market will not decrease. 
2. Geographic Market Segmentation: The scope of the merger does not include existing commercial vehicle assembly and sales operations within the Taiwan market. 
3. No Overlap in Sales Channels: HINO and MFTBC’s downstream assemblers and distribution networks (dealer systems) in Taiwan are mutually independent and will not overlap as a result of this merger. 
4. Market Competitive Pressure: Post-merger, the parties must still face competition from other industry peers in the market. 
5. Countervailing Power of Buyers: Downstream commercial vehicle purchasers, such as logistics transport operators and tour bus operators, possess sufficient bargaining power and countervailing power. 

Assessment of Overall Economic Benefit 

In addition to the competition assessment, the TFTC also considered the global net-zero carbon emissions trend and the need for industrial transformation. Given that the commercial vehicle sector is in a phase of rapid change toward electrification and intelligence (smart technology), it is expected that integrating the resources of the participating parties to develop key technologies required for this transformation will accelerate research, development, and innovation processes. 

In conclusion, the TFTC determined that the overall economic benefit of this merger outweighs the disadvantages arising from restrictions on competition. Therefore, in accordance with Article 13, Paragraph 1 of the Fair Trade Act, the TFTC made the decision not to prohibit the merger.