• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

Honda and Nissan officially begin merger talks to create world’s third-largest automaker

by December 24, 2024
written by December 24, 2024

Japanese automakers Nissan and Honda on Monday announced they had entered into official talks to merge and create the world’s third-largest automaker by sales.

In a news conference on Monday, Honda CEO Toshihiro Mibe said the companies needed greater scale to compete in the development of new technologies in electric vehicles and intelligent driving. A business integration would give the companies an “edge that will not be possible under the current collaboration framework,” Mibe said, according to a translation.

The deal would aim to share intelligence and resources and deliver economies of scale and synergies while protecting both brands, he said.

A holding company would be formed as the parent company of both Honda and Nissan, listed on the Tokyo Stock Exchange. The larger Honda will nominate most of the integrated entity’s board members. The merged group has the potential to deliver revenue of 30 trillion yen ($191.4 billion) and operating profit of more than 3 trillion yen, he said.

Honda reported 1.382 trillion yen in operating profit for the full year to March 2024, versus Nissan’s 568.7 billion yen. The companies would have a combined value of nearly $54 billion, with Honda’s market capitalization contributing the greater $43 billion share.

Discussions are set to conclude in June 2025.

Mibe added that if approved, the integration would be a mid- to long-term project that is currently not expected to show visible progress until 2030 and beyond.

Nissan’s strategic partner, Mitsubishi, has been offered the chance to join the new group and will take a decision by the end of January 2025.

The companies are grappling with intense global competition in the EV market from the likes of Tesla and China’s BYD. The high cost of the EV transition for legacy companies has long been expected to drive industry consolidation.

Japan’s Toyota is the world’s biggest automaker by sales, followed by Germany’s Volkswagen. A Nissan-Honda tie-up would see the group overtake South Korea’s Hyundai.

The proposed deal was first reported by Japan’s Nikkei newspaper on Dec. 17.

Nissan shares spiked after the initial report of a merger. Analysts say the potential tie-up is a result of financial underperformance at the company and of the restructure of its long-standing partnership with France’s Renault.

In its most recent quarterly results, Nissan said it would cut 9,000 jobs and reduce global production capacity by a fifth.

Honda CEO Mibe on Monday said some of the company’s shareholders may feel that the deal would represent Honda supporting Nissan, but noted the merger was “based on the assumption that Nissan completes its turnaround action.”

“If Nissan and Honda fail to stand on their own feet the business integration talks will not come to fruition,” he said.

Nissan CEO Makoto Uchida told reporters that the discussion of integration did “not mean we have given up on a turnaround” and was instead about ensuring the company’s competitiveness for the future.

“After doing this turnaround action for future development, future growth, we need to look at ultimate size and growth. This growth will be through partnerships,” he added.

Nissan has “been struggling in the market, it’s been struggling at home, it doesn’t have the right product lineup,” Peter Wells, professor of business and sustainability at Cardiff Business School’s Centre for Automotive Industry Research, told CNBC’s “Street Signs Europe” last week.

“There are so many warning signs, so many red flags around Nissan at the moment that something had to happen. Whether this is the answer is another question,” Wells added.

Shares of Renault closed 1.2% higher on Monday. The company directly holds a 17% stake in Nissan and owns another 18.7% via a French trust, while Nissan is a strategic investor in Renault’s EV and software entity Ampere.

In Asia trade, Nissan shares closed 1.2% higher ahead of the announcement, with Honda up 3.8% and Mitsubishi finishing 0.6% higher.

— CNBC’s Ruxandra Iordache and Sam Meredith contributed to this story.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
‘Independent-minded’: DCCC chair reveals blueprint for winning back majority during 2026 midterms
next post
Netanyahu warns Houthis amid calls for Israel to wipe out terror leadership as it did with Nasrallah, Sinwar

related articles

U.S. foreign tax bill sends jitters across Wall...

May 30, 2025

Amazon taps Xbox co-founder to lead new team...

May 30, 2025

Nvidia results spark global chip rally

May 30, 2025

Boeing to resume airplane deliveries to China next...

May 29, 2025

E.l.f. Beauty to acquire Hailey Bieber skin care...

May 29, 2025

Dick’s Sporting Goods stands by full-year guidance —...

May 28, 2025

Macy’s CEO says retailer will hike some prices...

May 28, 2025

23andMe to delist from Nasdaq, deregister with SEC

May 28, 2025

Walmart fined for shipping realistic toy guns to...

May 28, 2025

Why Trump’s iPhone tariff threat might not be...

May 25, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Trump taps Brooke Rollins as agriculture secretary

    November 23, 2024
  • DAVID MARCUS: Kash Patel is the fumigator the FBI needs

    December 1, 2024
  • Israeli PM Benjamin Netanyahu completes prostate surgery after UTI diagnosis

    December 30, 2024
  • USDCAD and USDCNH: USDCNH falls under pressure at 7.27723

    July 11, 2024
  • EURAUD and EURNZD: EURNZD is rising to a two-month high

    July 16, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,735)
  • Investing (624)
  • Stock (775)

Latest Posts

  • Karine Jean-Pierre ripped over ‘firing squad’ recap of Biden’s exit from race: ‘Still doesn’t understand’

    February 28, 2025
  • Vance hosts top-dollar fundraiser ahead of Trump inauguration

    January 16, 2025
  • Healthy living, party unity, and ‘time to smell the roses’: Congressional Republicans’ New Year’s resolutions

    January 1, 2025

Recent Posts

  • Trump orders US withdrawal from World Health Organization

    January 21, 2025
  • Breaking News: Trump Almost Shot at Pennsylvania Rally

    July 16, 2024
  • Memecoins, AI, and DeFi Tokens Lead Crypto Rebound

    April 21, 2025

Editor’s Pick

  • Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • Harris takes slim lead over Trump in new poll as voters view her as candidate of change

    October 8, 2024
  • Judges v Trump: Here are the key court battles halting the White House agenda

    March 21, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock