Nissan, Honda merger talks gather pace

Updated: Dec 18th, 2024


Shares of struggling Japanese automaker Nissan surged after merger talks with Honda Motor gained momentum, as per reports. The two automobile companies of  Japan are exploring talks for a potential merger.

Nissan and Honda have reportedly initiated discussions about merging their companies into a single entity to compete against those manufacturing electric vehicles (EVs), especially the Chinese. The carmakers had explored the possibility of partnership for EVs in March. This comes after rumours surfaced about Nissan’s financial troubles, with the company facing the possibility of bankruptcy. 

To overcome this crisis, it was speculated that Nissan may sell some of its stakes to Honda.

The merger talks reportedly began after both companies ended their partnerships with other automobile giants—Nissan terminated its alliance with Renault, and Honda ended its partnership with General Motors (GM).

Once the leading global automobile manufacturers, both Nissan and Honda are now looking to combine forces to better compete with Japan’s current top automobile company, Toyota.

It has been reported that Honda and Nissan will eventually bring in Mitsubishi as part of the merger, although Mitsubishi has not officially confirmed this. Nissan is Mitsubishi’s biggest shareholder.

Earlier this year, in March, the two companies signed a partnership to focus on electric vehicle development.

Details of the merger are still awaited, as the companies have only confirmed the talks and have not revealed further specifics.

Following the news, Nissan shares traded 20% higher in Tokyo, with Mitsubishi shares rising by 13%, while Honda shares fell by 2%.

Also read :

Japanese carmaker Nissan facing bankruptcy?

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