KUALA LUMPUR (Reuters) -- Malaysia's biggest car distributor Edaran Otomobil Nasional Bhd (EON) has denied that talks over a dealership deal with national car maker Proton have broken down, a financial website said on Tuesday.
Negotiations, which have been delayed, are expected to be wrapped up soon, the edgedaily website quoted EON chairman Saleh Sulong as saying.
"Things have taken longer than originally expected, but I am personally confident that soon it will be resolved," Saleh said.
The Edge weekly on Sunday reported that talks between EON and Perusahaan Otomobil Nasional Bhd (Proton) had come to a standstill.
The firms intended to have sealed the dealership deal for the sale of Proton cars, the country's top-selling brand, by the end of June, after signing a memorandum of agreement in March.
Under the agreement, EON would relinquish its distributorship rights to become a "super dealer" of Proton Edar, Proton's distribution arm.
But the Edge said Proton had disputed the enforceability of the memorandum because it was apparently not approved by its board of directors.
Proton Edar and EON jointly hold 60 percent of the passenger car market in Malaysia, Southeast Asia's largest last year when new vehicle sales hit 434,954 units.