Japanese vehicle makers, Nissan and Honda have announced plans to merge and set up a joint holding company by August 2026.
This was disclosed on Monday in a joint statement by the 2 firms along with Mitsubishi Motors which stated that they “have signed a memorandum of understanding to start discussions and considerations toward a business integration between the two companies through the establishment of a joint holding company.
“Shares of the newly established joint holding company under consideration are planned to be newly listed (technical listing) on the prime market of the Tokyo Stock Exchange. The listing is scheduled for August 2026.”
Analysts suggest that the merger would create the world’s third largest automaker by sales and is regarded as a bid to compete with Chinese rivals and Tesla regarding electric vehicles.
Honda, the second-largest Japanese automaker is reportedly valued at over $40 billion, while Nissan, Japan’s third-largest automaker, has a market capitalization of around $10 billion.
The joint statement further stated, “On August 1, both companies signed a further MOU to deepen the framework of the strategic partnership.
“The MOU between Nissan and Honda announced today is aimed to serve as an option to maintain global competitiveness and for the two companies to continue to deliver more attractive products and services to customers worldwide.
“If the business integration can be realized, both companies can aim to integrate their respective management resources such as knowledge, human resources, and technologies; create deeper synergies; enhance the ability to respond to market changes; and expect to improve mid- to long-term corporate value.”
Mergers in the automobile industry are nothing new. Mitsubishi Motors has an existing alliance with Nissan prior to the merger talks.
