Honda and Nissan announce merger, talks begin | Here's all you need to know about it

Honda and Nissan signed an MoU to initiate merger talks, aiming to create a joint holding company. This potential merger could position them as the third-largest automaker globally, pending a final decision in 2025 or 2026. Mitsubishi Motors might also join the alliance.

Honda and Nissan announce merger talks begin  here is all you need to know about it gcw

A memorandum of understanding (MoU) was signed today by Honda Motor Company and Nissan Motor Company to begin merger talks through the creation of a joint holding company. Maintaining global competitiveness with improved goods and services is the goal of the two Japanese car manufacturers' merger. If the merger goes through, the joint holding company will reportedly become the third-largest automaker in the world in terms of volume.

The reports suggested that the companies are in the process of a merger, and are yet to review all the details before jumping to the concert conclusion. If everything goes as per the plans an a final official decision about the same is likely to be taken in 2025 or 2026.

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Mitsubishi Motors Corporation might join the Honda-Nissan alliance as a separate MoU was signed between the three companies. It will reach the final decision regarding its participation by the end of January 2025.

Honda and Nissan established a strategic alliance for car intelligence and electrification in March 2024. The two businesses had also decided to do cooperative research in the fields of platforms for software-defined cars of the future. To help with the merger, Honda and Nissan will form an integration preparation group. It is anticipated that the combined sales revenue and operating profit after the merger will exceed Rs 16,30,580 crore and Rs 1,63,082 crore, respectively.

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It is anticipated that Honda would designate a majority of the joint holding company's internal and external directors on the day the share transfer goes into effect. From among the directors Honda has nominated, the joint holding company's president and representative director or president and representative executive officer will be chosen.

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