Japanese automakers Honda Motor Co. Ltd. (NYSE:HMC) and Nissan Motor Co. Ltd. (OTC:NSANY) have started talks for a potential merger, the two companies said on Monday.
What Happened: Nissan and Honda are planning to establish a joint holding company that will serve as the parent company for both Nissan and Honda.
The joint holding parent company will be listed on the Tokyo Stock Exchange and Nissan and Honda will subsequently be delisted. The listing of the joint holding company is scheduled for August 2026.
The two companies aim to wrap up talks by June 2025.
With the merger, the companies aim to increase sales revenue to more than 30 trillion Japanese Yen (approx. $191.34 billion) and to increase operating profits by more than 3 trillion yen.
Why It Matters: "Creation of new mobility value by bringing together the resources including knowledge, talents, and technologies that Honda and Nissan have been developing over the long years is essential to overcome challenging environmental shifts that the auto industry is facing," Honda Director and Representative Executive Officer Toshihiro Mibe said.
"We are still at the stage of starting our review, and we have not decided on a business integration yet...," he added.
Mitsubishi Motors is also considering joining the merger, the companies said, while adding that the smaller company is aiming to conclude whether it will participate by the end of January.
Nissan is a shareholder in Mitsubishi Motors.
The integration of the companies will mark the biggest merger in global auto history since Fiat Chrysler Automobiles and PSA merged in 2021 to create Stellantis NV.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
- Tesla Exec Bemoans Cost Of Sending Letter To Owners Affected By EV Giant's Recent Recall Of Nearly 700,000 Vehicles
Photo courtesy: Shutterstock
