There could be a merger of Honda Motor Company and Nissan Motor Company. The two automakers plan to partner and compete in the global market with Toyota Motor Corporation.
Honda Executive Vice President Shinji Aoyama said that besides the merger, Honda and Nissan were also discussing several other options, including a capital merger and the creation of a holding company.
According to media reports, Mitsubishi Motors Corp could also participate in this deal, as it already has capital ties with Nissan.
Nissan shares rose 24%, Honda fell 3%
After the announcement of the Honda-Nissan merger, Nissan shares rose 23.70% on the Tokyo Japanese Stock Exchange (TYO). While shares of Honda Meters fell 3.04%.
After the merger, two major companies will be created in Japan.
With this agreement, two major companies will work in the Japanese automobile industry: first: a holding company controlled by Honda, Nissan and Mitsubishi and second: a group composed of Toyota group companies.
Nissan has currently reduced its ties with France’s Renault SA. While Honda withdrew from General Motor Company. Before this deal was discussed between Honda and Nissan earlier this year, the two companies agreed to work together on batteries and software for electric vehicles.
According to a Nikkei report, the two automakers are considering signing a memorandum of understanding to discuss a shared stake in a new holding company.