The Japanese manufacturer Honda confirmed this Wednesday that it was considering a merger with Nissan, after rumors widely spread in the press. This alliance could allow the two Japanese giants to strengthen their position against foreign competitors, particularly in the field of electric vehicles.
The two manufacturers, who are already associated in a “strategic partnership”, indicated that they were about to begin discussions to consolidate their activities under a single holding company. According to the Japanese economic daily Nikkei which reports this information, a memorandum of understanding should be signed in the coming days to make this merger a reality.
“As we announced in March and August, we are discussing possibilities for cooperation with Nissan in several areas, and a possible merger “is among the possibilities,” said a Honda spokesperson, specifying however that “nothing has not been decided.”
For its part, Nissan reacted by affirming that the two entities were “exploring various possibilities for collaboration to leverage their respective strengths”.
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Honda and Nissan, respectively the second and third largest Japanese car manufacturer after Toyota, plan to include Mitsubishi Motors, of which Nissan is the main shareholder, in this new entity. This merger could give rise to one of the world’s largest automobile groups, according to Nikkei.
As a result of this announcement, Nissan shares were suspended on the Tokyo Stock Exchange, before jumping 24%. Conversely, Honda saw its stock fall by 1.67%, while Mitsubishi recorded an increase of 14.31%.
The two groups had already signed a memorandum of understanding last March for a “strategic partnership” aimed at collaborating on electric vehicles and other areas, including software platforms and essential components for electrified vehicles.
