Honda, Nissan exploring potential merger

Honda and Nissan are expected to announce a partnership on Monday to investigate the possibility of merging through the establishment of a joint holding company, according to a person familiar with the matter who spoke to Reuters.

The merger would result in the world’s third-largest automotive group in terms of vehicle sales, following Toyota and Volkswagen, as traditional car manufacturers encounter increasing competition from Tesla and Chinese competitors.

Honda and Nissan plan to complete the agreement by June 2025 and establish a holding company in August 2026. At that time, the company’s shares will be listed, and Honda and Nissan will be delisted, according to the same source.

Honda, the second-largest automaker in Japan after Toyota, has a market capitalisation exceeding $40 billion, while Nissan, ranked third, is valued at approximately $10 billion.

The merging would represent the most significant transformation in the automotive sector worldwide since Fiat Chrysler Automobiles and PSA combined in 2021 to establish Stellantis in a $52 billion agreement.

Attribution: Reuters

Subediting: M. S. Salama