Nissan Shares Surge 23% After Reports Of Merger Talks With Honda
Forbes
Nissan, Honda Sign Deal to Explore Merger
story
Above: (L to R) Makoto Uchida, president of Nissan Motor Corporation, Toshihiro Mibe, president of Honda, and Takao Kato, president of Mitsubishi Motors, attend a joint press conference in Tokyo on Dec. 23, 2024. Image copyright: PHILIP FONG/Contributor/AFP via Getty Images
The Facts
Japanese carmakers Honda and Nissan announced Monday the signing of a memorandum of understanding (MoU) to explore a merger to form a joint holding company — potentially the world's third-largest automaker by sales.
The companies, alongside Nissan group firm Mitsubishi Motors, said they aim to finalize a deal by June 2025 and complete the process in August 2026. A Japanese government official reportedly said the two had informed authorities of their plan.
Most of the new holding firm's internal and outside directors, including its president, are expected to be Honda-nominated. Nissan, whose largest shareholder Renault backs a merger, would receive Honda's hybrid technology.
The Spin
Narrative A
Honda and Nissan's potential merger signals the end of an era of independent Japanese automakers. The union would forge a $52B industrial titan — a direct response to BYD's meteoric rise and Foxconn's threatening interest in Nissan. This marriage of necessity could spark an unprecedented realignment in global automotive power dynamics.
Narrative B
Struggling Nissan's possible union with Honda is one destined for disappointment. The alliance faces daunting obstacles — overlapping product lines, clashing corporate cultures, and Honda's potential inheritance of Nissan's troubled US business. The merger's prospects are dim, given the widespread redundancies between the companies.
