Japanese automakers Nissan and Honda have begun official negotiations to merge, which could make them the world's third-largest carmaker by sales. Both companies announced share buyback plans. Honda plans to buy back 24% of its issued shares by December 23, 2024. Nissan similarly announced buyback plans by December 23, 2024, amounting to 24% of its issued shares.
A holding company will be established as the parent organization for both Honda and Nissan, and will be listed on the Tokyo Stock Exchange. Nissan's strategic partner, Mitsubishi, has been given the opportunity to join the new group and is expected to make a decision by the end of January 2025. Honda is projected to achieve 1.382 trillion yen in operating profit for the full year to March 2024, compared to Nissan's 568.7 billion yen. The automakers would have a combined value of nearly $54 billion, with Honda's market capitalization contributing the greater $43 billion share
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