Official announcements from Nissan, Honda, or Mitsubishi; major financial news outlets

Nissan, Honda, and Mitsubishi in Merger Talks to Form World's Third-Largest Automaker

Dec 18, 2024, 04:47 AM

Nissan Motor Co. and Honda Motor Co. are in discussions about a potential merger that could lead to the formation of a holding company and create the world's third-largest automaker, according to multiple media reports. The news caused Nissan's shares to surge as much as 24% in Tokyo trading—their biggest gain in decades—closing at 417.60 yen, while Honda's shares dipped. Mitsubishi Motors Corp., allied with Nissan, also saw its shares surge and is rumored to be part of the merger talks. The Tokyo Stock Exchange temporarily halted trading of Nissan shares to verify the reports, resuming later. Both companies confirmed they are exploring closer collaboration but denied that a merger decision has been made. Honda CEO Toshihiro Mibe did not deny the possibility when questioned by reporters. The potential merger is seen as a move to strengthen competitiveness against global rivals like Toyota Motor Corp., especially in the electric vehicle market. Reports suggest Nissan's board will meet on December 23 to approve a memorandum of understanding, with a formal announcement expected the same day. Additionally, Renault SA, which holds a stake in Nissan, saw its shares rise 5.39% in London. The Japanese government expressed optimism that such a move would help domestic automakers compete globally. The merger discussions were reportedly accelerated due to Foxconn's approach to acquire a controlling stake in Nissan.