Honda, Nissan aim to finalize merger terms by June- NHK

) are aiming to finalize the terms of a potential merger by June 2025, Japanese broadcaster NHK reported on Monday, amid a slew of reports that two are considering a combination.) have already signed a basic merger agreement, and will hold a press conference later on Monday to announce the deal, the NHK report said. The two will aim to finalize a deal by June 2025.Honda and Nissan plan to first establish a holding company under which the two will be merged.

Reports of the potential merger come as both Honda and Nissan grapple with dwindling overseas sales, especially in key automobile market China. Growing demand for electric vehicles in the country has especially eaten into Honda and Nissan’s market shares, as has an ongoing price war in the EV market between Tesla (NASDAQ:Honda, Nissan and Mitsubishi shares rose between 1.3% and 3% after the report. Nissan's shares had rallied sharply last week after news of the potential merger first broke.

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