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Honda and Nissan Motors May Merge: Aims to Compete with Toyota in the Global Market
Honda Motor Company and Nissan Motor Company are reportedly exploring a merger. The two automakers are considering joining forces to compete more effectively with Toyota Motor Corporation in the global automotive market.
Exploring Options Beyond Merger
Honda’s Executive Vice President Shinji Aoyama revealed that, apart from a merger, both companies are also discussing other options such as capital partnerships and the creation of a holding company.
Mitsubishi May Join the Deal
Media reports suggest that Mitsubishi Motors Corporation, which already has capital ties with Nissan, could also be part of this potential deal.
Nissan Shares Surge 24%, Honda Drops 3%
Following the news of a possible merger, Nissan’s shares surged by 23.7% on the Tokyo Stock Exchange (TYO), while Honda’s shares declined by 3.04%.
Formation of Two Major Japanese Auto Groups
If the merger happens, it would result in two major auto groups in Japan:
- A holding company controlled by Honda, Nissan, and Mitsubishi.
- Toyota Group, which already includes several companies.
Shift in Global Partnerships
Nissan recently reduced its ties with France’s Renault SA, while Honda stepped back from its partnership with General Motors. Earlier this year, Honda and Nissan agreed to collaborate on electric vehicle batteries and software, paving the way for this potential deal.
Signing of MoU Expected
According to Nikkei reports, the two automakers are planning to sign a Memorandum of Understanding (MoU) to discuss shared equity stakes in a new holding company.
