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Honda-Nissan Merger Talks Target $50 Billion Valuation by August 2026

Dec 30, 2024, 07:10 AM

Honda Motor Co. and Nissan Motor Co. have entered discussions for a potential merger, aiming to create a joint holding company by August 2026, with plans to list on the Tokyo Stock Exchange. The merger could position the combined entity as the world’s third-largest automaker, following Toyota and Volkswagen, with a potential valuation exceeding USD $50 billion. Mitsubishi Motors, a Nissan alliance member, may also join the merger. Honda is expected to hold a majority stake in the joint venture, reflecting its stronger financial position, with a market capitalization over four times that of Nissan. The collaboration aims to strengthen competitiveness in the electric vehicle (EV) market against rivals such as Tesla and Chinese automakers. Both companies have already begun sharing EV components and technologies. Despite the merger news, Nissan shares have dropped nearly 13% over two days, with investor concerns over Honda’s dominant position in the partnership and profit-taking after a recent rally. Nissan recently announced a 6% reduction in its global workforce of 133,000 and reported a quarterly loss of $85 million. The merger discussions come amid broader challenges in the automotive industry, including environmental shifts and economic pressures.