According to a newspaper, Japanese car manufacturers Honda and Nissan want to start talks about a merger. According to reports, Mitsubishi Motors will also be brought on board. This creates one of the largest automotive groups in the world.
According to insiders, the companies wanted to operate under one holding company, Nikkei reported on Tuesday. They are expected to sign a letter of intent for the new merged company soon, the Nikkei newspaper reported on Tuesday.
The shares of the two companies in the new group and other details would have to be decided later. Honda and Nissan said in identical statements that neither company had announced merger talks. As announced in March, various options for future collaboration are being explored. Further information would be made public in due course.
Community of convenience against strong competition from China
A deal could be the biggest in the industry since the $52 billion (about €49 billion) merger between Fiat Chrysler and PSA in 2021, creating Stellantis. Honda and Nissan agreed in March to work together on electric cars to better defend themselves against tough competition from Tesla and Chinese factories. In August they deepened their collaboration and agreed to work together on, among other things, batteries. They are the third and second largest car manufacturers in Japan after Toyota.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
