Honda and Nissan plan merger bid by 2026, set to form world’s third-largest carmaker

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Nissan,Honda-Nissan Merger

TOKYO, Dec 23 — Honda and Nissan agreed to explore a merger and set up a joint holding company, they said today, which would create the world’s third-largest automaker and...

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The two companies would aim for combined sales of 30 trillion yen and operating profit of more than 3 trillion yen through the potential merger, they said in a statement. Honda, Japan’s second-biggest automaker after Toyota, has a market capitalisation of more than US$40 billion, while third-ranked Nissan is valued at about US$10 billion.The integration of the two storied Japanese brands would mark the biggest reshaping in the global auto industry since Fiat Chrysler Automobiles and PSA merged in 2021 to create Stellantis in a US$52 billion deal.

The two companies said in March they were considering cooperation on electrification and software development. They agreed to conduct joint research and widened the collaboration to Mitsubishi Motors in August. In a separate online press conference with the Foreign Correspondents Club of Japan on Monday, former Nissan Chairman Carlos Ghosn said he did not believe the Honda-Nissan alliance would be successful, saying the two automakers were not complementary.

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