Last week, numerous sources claimedreported that Nissan and Honda had started merger talks, and now both companies have confirmed these reports.
Nissan and Honda have begun discussing the possibility of a merger to counter the threat they both feel from Chinese electric vehicle manufacturers. Mitsubishi, in which Nissan is a major shareholder, also seems to be «considering» the possibility of joining.
If the merger eventually goes through after these negotiations, the combined company would become the third largest automaker in the world by sales after Toyota and Volkswagen, selling more than 8 million vehicles annually worldwide. The new company will displace the Hyundai and Kia group, which is currently ranked 3rd.
Of course, the merger would also help both brands to better compete with Tesla and Chinese electric car manufacturers such as BYD. Honda is currently the second largest automaker in Japan, and Nissan is the third.
Honda’s CEO Toshihiro Mibe said:
«The rise of Chinese automakers and new players has significantly changed the automotive industry. We must develop the capabilities to deal with them by 2030, otherwise we will be defeated».
Such a merger would be the biggest change in the automotive world since the merger of Fiat Chrysler and PSA Peugeot Citroen in 2021, which created Stellantis.
Merger talks between Honda and Nissan (and possibly Mitsubishi as well) should be completed by June next year. If they agree to the deal, a holding company will be created by August 2026, at which point both Nissan and Honda shares will be delisted. After the merger, the automakers will continue to sell cars under their own brands, but under a single joint holding company.
Honda will appoint the majority of the new company’s board of directors, as it is the larger company with a current market capitalization of over €36 billion, while Nissan is valued at only about €9 billion.
Source: arenaev