Honda, Nissan aim to close merger talks in June 2025

AFP :

Honda and Nissan pact to explore a merger by setting up a joint holding company with the aim of reaching a deal by June 2025 on Monday.

The consolidation would create the world’s third-largest auto group by vehicle sales after Toyota and Volkswagen as legacy carmakers face growing challenges from Tesla TSLA.O and Chinese rivals.

Honda, Japan’s second-biggest automaker after Toyota, has a market capitalisation of more than $40 billion, while third-ranked Nissan is valued at about $10 billion.

The automakers said they will hold a joint press conference on Monday at 0800 GMT where their chief executives would be joined by the head of Nissan partner Mitsubishi Motors 7267.T.
The sources spoke on condition of anonymity because the information was not public.

Honda and Nissan aim to finalise the deal by June 2025 and set up a holding company in August 2026, when its shares will be listed while Honda and Nissan would delist, the person familiar with the matter said.

Honda will appoint the majority of the holding company’s board, including its leader, the person added.

The integration of the two storied Japanese brands would mark the biggest reshaping in the global auto industry since Fiat Chrysler Automobiles and PSA merged in 2021 to create Stellantis STLAM.MI in a $52 billion deal.

Combining Mitsubishi Motors would take the Japanese group’s global sales to more than 8 million cars. The current No. 3 group is South Korea’s Hyundai 005380.KS and Kia 000270.KS.
Honda and Nissan have been exploring ways to bolster their partnership, including a merger, Reuters reported last week.

The two companies said in March they were considering cooperation on electrification and software development. They agreed to conduct joint research and widened the collaboration to Mitsubishi Motors in August.