Honda and Nissan Propose Merger to Create Automotive Giant

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.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 actio

France Dernières Nouvelles, France Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Nissan-Honda merger: Japanese automakers announce plans to mergeJapanese automakers Nissan and Honda have announced plans to work toward a merger that would catapult them to a top position in an industry in the midst of tectonic shifts as it transitions away from reliance on fossil fuels. The two companies said they signed an agreement on integrating their businesses on Monday.
La source: AP - 🏆 728. / 51 Lire la suite »

Honda and Nissan officially begin merger talks to create world's third-largest automakerBoth companies are grappling with intense global competition in the electric vehicle market from the likes of Tesla and China's BYD.
La source: CNBC - 🏆 12. / 72 Lire la suite »

Asia markets begin Christmas week higher; Nissan-Honda merger deal in focusInvestors will be looking out for any official announcement related to the merger of Japanese automakers Honda Motor and Nissan Motor.
La source: NBCNewYork - 🏆 270. / 63 Lire la suite »

Asia-Pacific markets begin Christmas week higher; Nissan-Honda merger deal in focusInvestors will be looking out for any official announcement related to the merger of Japanese automakers Honda Motor and Nissan Motor.
La source: nbcsandiego - 🏆 524. / 51 Lire la suite »

Honda, Nissan aim to finalize merger terms by June- NHKHonda, Nissan aim to finalize merger terms by June- NHK
La source: Investingcom - 🏆 450. / 53 Lire la suite »

Asia stocks rise on US inflation cheer; Honda-Nissan merger in focusAsia stocks rise on US inflation cheer; Honda-Nissan merger in focus
La source: Investingcom - 🏆 450. / 53 Lire la suite »