Honda, Nissan Eye Major Merger, Aim to Finalise Deal by 2025

Honda and Nissan are expected to, on Monday, announce a potential agreement to explore a merger by creating a joint holding company, with plans to finalise the deal by June 2025, according to reports.

This consolidation would position the newly formed group as the world’s third-largest automaker by vehicle sales, following Toyota and Volkswagen, as traditional car manufacturers face intensifying competition from Tesla and Chinese companies.

Honda, Japan’s second-largest automaker, is valued at over $40 billion, while Nissan, in third place, has a market capitalisation of around $10 billion. Following board meetings on Monday, the two companies are set to hold a joint press conference, with Mitsubishi Motors, Nissan’s alliance partner, also anticipated to participate, according to reports.

The deal is expected to be finalised by June 2025, with the formation of the holding company slated for August 2026, at which point its shares will be listed, and both Honda and Nissan will delist, as reported by one source. Honda will assume the majority of the holding company’s board positions, including that of its leadership.

The merger of these two prominent Japanese manufacturers would mark the most significant shift in the global automotive industry since the 2021 merger of Fiat Chrysler Automobiles and PSA to form Stellantis in a $52 billion deal.

This comes amid challenges for both companies, with Nissan announcing plans to reduce 9,000 jobs and cut 20% of its global production capacity due to declining sales in key markets such as China and the US Honda also reported disappointing earnings, largely driven by weaker sales in China.

Frances Ibiefo

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