Japanese auto makers Honda and Nissan say they plan to complete the merger in August 2026.
Honda and Nissan signed a basic agreement for merger talks on Monday, according to a joint media briefing held in Tokyo. Honda also said it will buy back as much as ¥1.1 trillion yen ($7 billion) of its own shares.
Honda Motor (NYSE:HMC) and Nissan are expected to announce a plan to establish a joint holding company as part of a potential merger, sources told Reuters. The two automakers aim to finalise the agreement by June 2025, with the holding company expected to list shares in August 2026.
Both companies are grappling with intense global competition in the electric vehicle market from the likes of Tesla and China's BYD.
Honda and Nissan are expected on Monday to announce the start of business integration talks, according to Japanese media reports, as the automakers look to survive a rapidly changing industry landscape.
Honda and Nissan are considering producing vehicles in one another's factories as part of their talks to deepen ties, news agency Kyodo reported on Saturday without citing sources.
Some unions are born of necessity, others from convenience. In the case of Honda and Nissan's potential merger, it is mostly defensive as Chinese rivals take the world by storm.
Honda and Nissan are reportedly in discussions about a potential merger between the Japanese automakers, and the rumors do not come as a surprise to industry experts.
Shares of Nissan Motor Co. closed 23.7% higher on Wednesday, following reports that the Japanese automaker was planning merger discussions with Honda Motor Co,
Nissan (NSANY, 7201.T) stock surged, while Honda (HMC, 7267.T) stock is under pressure as the market reacts to a potential merger between the two Japanese automakers. Former Federal Trade Commission (FTC) commissioner Mozelle Thompson joins Madison Mills to discuss what antitrust hurdles a possible merger would face.
Honda (HMC, 7267.T) and Nissan (NSANY, 7201.T) are considering a potential merger that would create the third-largest automaker in the world. Yahoo Finance Senior Autos Reporter Pras Subramanian sits down with Brad Smith and Madison Mills on Morning Brief to break down what investors need to know.
Both are trying to keep up in the new world of electric vehicles Transcript: Conway Gittens: The Dow is on track to snap its longest losing streak since 1978 despite somber news on the housing front. New home construction projects dropped for a second month in a row, falling to a four-month low in November.