Two Japanese auto giants, Honda and Nissan, have signed an agreement to begin merger talks. The business will be managed by a single holding company, which is expected to go public in August 2026. This was reported by Kyodo News, according to UNN.
Details
It is noted that Honda, which will have a majority in the board of directors, will start buying up its own shares worth $7 billion from the market. It is likely that the holding will also include Mitsubishi, a quarter of which is owned by Nissan.
The merger will create the world's third-largest automaker after Toyota and Volkswagen, with 7.5 million cars a year, and will allow the companies to compete with competitors, mainly Chinese.
The deal is a lifesaver, first of all, for Nissan, which recently had to cut production plans by 20% and announce the layoff of nine thousand employees. According to former CEO Carlos Ghosn, sales have fallen by more than 40% since his arrest in 2018.
All three companies have problems with hybrid technologies, which are most in demand in the Chinese market.
Recall
Earlier, the media reported about a possible merger of Nissan and Honda to create a new holding company. The combined company with Mitsubishi will be able to sell more than 8 million cars annually, competing with Toyota and Volkswagen.