Honda and Nissan announce reunification into a joint holding company
Kyiv • UNN
Honda and Nissan have signed an agreement to create a joint holding company that will go public in 2026. The combined company will become the third largest automaker in the world after Toyota and Volkswagen.
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.
