Japanese auto giants Honda Motor Company and Nissan Motor today officially announced that they have started talks on a potential merger. The companies plan to create a holding company, which will own Honda and Nissan, creating the world’s third-largest automaker.
Both automakers today signed an MOU to formally begin the merger talks. The companies will explore the possibility of participation, and involvement in sharing with the business integration, aiming to reach its conclusion by the end of January 2025.
“Given the drastically changing business environment, Nissan and Honda have been holding discussions on ongoing joint projects. As a result of the series of dialogues, we discovered that the synergy from a business integration is greater than anticipated,” Honda Motor Director, President and Representative Executive Officer Toshihiro Mibe said.
Honda and Nissan will be wholly owned subsidiaries of the holding company with their respective brands to continue. Mibe noted that the integration has the potential to create a combined entity that could generate annual revenue exceeding 30 trillion yen and an operating profit of over 3 trillion yen.
“The integration discussions are not a sign of Nissan giving up on its turnaround efforts but rather a strategic move to strengthen competitiveness and future growth through synergies with Honda,” said Nissan Director, President and CEO Makoto Uchida.
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