Honda and Nissan Propose Merger to Boost EV, Intelligent Driving Competitiveness

If the deal goes through, the merged group has the potential to deliver revenue of 30 trillion yen ($191.4 billion) and operating profit of over 3 trillion yen, Honda CEO Toshihiro Mibe said. Nissan's strategic partner Mitsubishi has been offered the chance to join the new group and will take a decision by the end of January 2025.

In a press conference on Monday, Honda CEO Toshihiro Mibe said the companies needed greater scale to compete in the development of new technologies in electric vehicles and intelligent driving. A business integration would give the companies an edge that will not be possible under the current collaboration framework, Mibe said, according to a translation. The deal would aim to share intelligence and resources and deliver economies of scale and synergies while protecting both brands, he said. A holding company would be formed as the parent company of both Honda and Nissan, listed on the Tokyo Stock Exchange. The larger Honda will nominate most of the integrated entity's board members. The merged group has the potential to deliver revenue of 30 trillion yen ($191.4 billion) and operating profit of over 3 trillion yen, he said. Honda reported 1.382 trillion yen in operating profit in the full-year to March 2024, versus Nissan's 568.7 billion yen. The companies would have a combined value of nearly $54 billion, with Honda's market capitalization contributing the greater $43 billion share. Mibe added that if approved, the integration would be a mid to long-term project that is currently not expected to show visible progress until 2030 and beyond. Nissan's strategic partner Mitsubishi has been offered the chance to join the new group and will take a decision by the end of January 2025. Honda CEO Mibe on Monday said some of the company's shareholders may feel that the deal would represent Honda supporting Nissan, but noted the merger was based on the assumption that Nissan completes its turnaround action

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