Nissan shares surged 22% while Honda Motor stock slipped following media reports that the two Japanese automakers were potentially considering a merger.
According to a report in the Nikkei newspaper, Honda and Nissan are considering operating under a holding company, and soon will sign a memorandum of understanding.Honda and Nissan are considering operating under a holding company, and soon will sign a memorandum of understanding, according to a report in the. They also look to eventually bring Mitsubishi Motors, in which Nissan is the top shareholder with a 24% stake, under the holding company, according to the report.
The combined Nissan-Honda-Mitsubishi enterprise would equate to more than 8 million vehicle sales annually, according to Nikkei. That would place the company among the world's largest automakers, but still below fellow Japanese automaker The merger report follows the two Japanese automakers entering into a strategic partnership earlier this year on shared automotive components and software.Such a tie-up would be the largest automotive industry merger since Fiat Chrysler joined with France-based PSA Groupe to formJapan's Honda and Nissan to reportedly begin merger talks
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Honda and Nissan reportedly open merger talksWill Shanklin has been writing about gadgets, tech and their impact on humanity since 2011. Before joining Engadget, he spent five years creating and leading the mobile technology section for New Atlas. His work has also appeared on SlashGear, TechRadar, Digital Trends, AppleInsider, Android Central, HuffPost and others.
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