December 25, 2024 – Honda and Nissan Motor Company are planning to finalize the framework for a business merger by the end of January 2025, according to a report by Kyodo News Agency.
The two automakers will focus their discussions on a soon-to-be-established merger preparation committee. Given that Honda’s market capitalization (7.56 trillion yen) significantly exceeds that of Nissan (1.77 trillion yen), the merger ratio has become a key point of discussion.
Honda and Nissan announced on the 23rd of this month that they have fully initiated negotiations, aiming to sign a merger contract in June 2025. They plan to establish and list a holding company that will include both parties by August 2026. If the merger is realized, it will create a giant automotive group with sales exceeding 30 trillion yen, becoming the third largest automaker in the world by sales volume.
Mitsubishi Motors Corporation is expected to decide whether to join the negotiations by the end of January 2025. The merger framework agreed upon by Honda and Nissan will serve as crucial material for their decision.
During the joint press conference on the 23rd, Nissan’s CEO, Makoto Uchida, emphasized equality, stating, “This is not a superior-subordinate relationship, but a partnership to explore the future together.” However, regarding the holding company, the proposed approach is for Honda to occupy more than half of the board seats and appoint the CEO.
