Honda and Nissan set to announce start of merger talks, aiming to conclude discussions by June 2025

Honda and Nissan set to announce start of merger talks, aiming to conclude discussions by June 2025

Honda and Nissan are set to unveil a pact to explore a merger, with the automakers’ chief executives – joined by the head of Nissan partner Mitsubishi Motors – reportedly due to hold a press conference outlining this later today, Reuters reports.

Citing sources familiar with the matter, the news agency reported that both companies are aiming to finalise the integration talks by June 2025. If talks are successful, a joint holding company will be set up in August 2026 and will list its shares, while Honda and Nissan would delist.

Honda will likely appoint the leader and the majority of internal and external board members of the newly-established holding company, the report added.

Honda and Nissan set to announce start of merger talks, aiming to conclude discussions by June 2025

Should it happen, the integration of the two Japanese brands would mark the biggest reshaping in the global auto industry since Fiat Chrysler Automobiles and PSA merged in 2021 to create Stellantis, and pool the automakers resources for them to better compete against Tesla as well as Chinese electric vehicle makers.

The merger, if it materialises, will also create the world’s third-largest auto group by vehicle sales after Toyota and Volkswagen, placing it ahead of Hyundai/Kia. In terms of volume, combining Mitsubishi Motors’ numbers would take the partnership’s global sales annually to more than eight million units.

French automaker Renault, Nissan’s largest shareholder, is open in principle to a deal and would examine all the implications of a tie-up, sources have said. Taiwan’s Foxconn (also known as Hon Hai Precision Industry), seeking to expand its nascent EV contract manufacturing business, approached Nissan about a potential stake purchase, but the Japanese company reportedly rejected it. Foxconn has since decided to pause its approach in light of developments about the possible merger.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Dare to dream on Dec 23, 2024 at 5:03 pm

    Should it happen, the integration of the two top selling Honda Civic and Nissan GTR would mark the biggest reshaping in the global auto industry to create the Civic-GTR. Dreaming for this to happen.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Tan Chong on the way out..HONSAN merger on Dec 23, 2024 at 9:30 pm

    Once the HONSAN merger is on,our Nissan distributor here..Tan Chong better tapao ,convert existing showrooms to sell other competing China EVs.
    It is unthinkable Honda Japan and DRB will sleep on the same bed with bleeding ETCM.The marriage will be very messy.
    Right now,ETCM only selling less than half the Nissan product range,mainly obsolete outdated models that trail the Chinese cars badly.

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