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Honda and Nissan Plan to Start Merger Talks, Report Says
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Main points
- Honda and Nissan are reportedly planning to start talks on a possible merger.
- The merged company could also reportedly include Nissan-backed Mitsubishi, which would become a larger rival to Japan’s Toyota.
- This year, the three companies have collaborated on electric vehicle collaboration.
Japanese car manufacturer Honda (Hamas) and Nissan (National Trinity) reportedly plans to begin discussions about a potential merger.
The two companies intend to sign a memorandum of understanding to negotiate a stake in a holding company that would house the combined automaker, Nikkei reported. the report said. Such a deal would create a bigger rival for Japanese automaker Toyota (TM). The report said the talks could also extend to Mitsubishi Motors, which is partially backed by Nissan Motor Co.
Nissan Motor Co’s U.S.-listed shares rose on Tuesday, while Honda Motor Co’s shares edged higher.
In March this year, Honda and Nissan established an electric vehicle-related partnership. Mitsubishi joined the partnership in August.
Spokespersons for both companies said on Tuesday: “Honda and Nissan are exploring various possibilities for future cooperation to fully leverage each other’s strengths. If there are any updates, we will inform our stakeholders in due course.”
Honda, Nissan and Mitsubishi sold a combined 3.7 million vehicles in the six months ended Sept. 30, while Toyota Motor Corp. sold 4.5 million vehicles.
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