DETROIT According to a Tuesday Nikkei newspaper story, Japanese manufacturers Nissan Motor and Honda Motor are reportedly planning to begin merger talks in order to better compete in the quickly evolving global car market.
According to the source, Honda and Nissan will shortly sign a memorandum of understanding and are thinking about functioning under a holding company. Additionally, they hope to eventually include Mitsubishi Motors under the holding company, of which Nissan is the largest shareholder with a 24% stake.
“Our company did not release the reported content,” Honda stated in an email statement. As stated in March of this year, Honda and Nissan are utilizing each other’s strengths to investigate a number of potential future collaboration opportunities. Any adjustments will be communicated to our stakeholders at the appropriate time.
Following the two Japanese automakers’ August strategic alliance on common automotive software and components, the merger report was released.
The largest merger in the automobile sector since Fiat Chrysler and France-based PSA Groupe formed Stellantis in January 2021 would be this partnership.
In order to share costs and better compete with China’s quickly growing automakers and the United States’ leader in all-electric vehicles, Tesla, automotive consultants and other experts have recently called for a rise in mergers and acquisitions.
At lunchtime on Tuesday, Honda’s shares that are traded in the United States were up about 2%. Nissan’s over-the-counter shares increased by almost 11%.
When CNBC asked Nissan for comment, the company was not immediately accessible.
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