Nissan and Honda in Merger Talks to Bolster Global Automotive Presence

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Nissan and Honda are reportedly in discussions for a potential merger, aiming to strengthen their position in the evolving automotive landscape. The Nikkei reports that both companies are exploring a holding company structure and plan to sign a memorandum of understanding soon.

Nissan and Honda plan to enter into negotiations for a merger to better compete in the rapidly changing global automotive industry, the Nikkei newspaper reported on Tuesday. Honda and Nissan are considering operating under a holding company, and soon will sign a memorandum of understanding, according to the report. U.S.-traded shares of Honda were up roughly 2% during midday trading Tuesday. Over-the-counter shares of Nissan jumped more than 11%.

They also look to eventually bring Mitsubishi Motors, in which Nissan is the top shareholder with a 24% stake, under the holding company. 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. In similar statements, Honda and Nissan neither confirmed nor denied the report: 'The reported content was not released by our company,' Honda said. 'As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other's strengths. We will inform our stakeholders of any updates at an appropriate time.' 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 for

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