Is Nissan and Honda going to merge? Toyota will get a strong competitor, know the details

Honda nissan merger: A big news is coming out in the global automobile industry. Two big Japanese auto companies may merge. Honda Motor Company and Nissan Motor Company are reportedly talking about a possible merger. This will give a new shape to the Japanese automotive industry and a big competitor may emerge for Toyota Motor Corporation. Bloomberg has given this information in a report quoting people related to the matter. The talks are still in the initial stage. Options like merger, capital investment or formation of a holding company are being discussed between the two companies.

Nissan shares jumped 24%

After the news of the talks surfaced, Honda’s Executive Vice President Shinji Ayoma confirmed on Wednesday that the company is evaluating various strategic options, including a possible merger. Let us tell you that recently there has been a collaboration between Honda and Nissan on EV batteries and software. Earlier this year, Honda CEO Toshihiro Mibe mentioned the possibility of capital partnership with Nissan. After the news of talks regarding the merger, Nissan’s shares rose 24 percent in early trading. While Honda’s shares fell 3.4 percent.

Mitsubishi may also be involved

The proposal under consideration also includes creating a holding company to manage the combined operations. Mitsubishi Motors Corporation may also be involved in this deal. It already has a capital tie-up with Nissan. If this deal happens, it will divide Japan’s auto sector into two major groups. One will be led by Honda, Nissan and Mitsubishi and the other will be led by Toyota and its allies. The report said that this merger can strengthen the global competitiveness of the merged company. This will make it easier to face the challenges of Tesla and Chinese electric automakers.

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