Malaysian newspapers are reporting that talks between Volkswagen and state-owned Proton are nearing competition, with the German carmaker likely to take management and equity control of Proton within months. However, Reuters reports that a VW spokesman has disputed the claims and stated “it is a rumor without any substance.”

The Edge Daily reported that VW would take a 51% stake in a newly formed company that would obtain Proton’s key car manufacturing assets as well as its R&D and engineering divisions. Proton would receive the remaining 49% share of the new company and would also retain ownership of its distribution arm Proton Edar.

Multinational Sime Darby is also rumored to be a potential bidder in the deal, and was reported to be in the running to take control of the 43% stake in Proton currently held by the Malaysian government’s Khazanah investment arm.

Representatives for all the parties involved are said to be in New York finalizing the matter, however, the Malaysian government announced last week that the final decision would be made within the next three months.