Honda, Nissan start discussions toward business combination in 2026

Nissan Motor (NSANY) and Honda Motor (HMC) said they have signed a memorandum of understanding “to start discussions and considerations toward a business integration between the two companies through the establishment of a joint holding company” in 2026. The companies said, “The business environment for both companies and the wider automotive industry has rapidly changed and the speed of technological innovation has continued to accelerate. The MOU between Nissan and Honda announced today is aimed to serve as an option to maintain global competitiveness and for the two companies to continue to deliver more attractive products and services to customers worldwide. If the business integration can be realized, both companies can aim to integrate their respective management resources such as knowledge, human resources, and technologies; create deeper synergies; enhance the ability to respond to market changes; and expect to improve mid- to long-term corporate value.” Nissan and Honda will establish an integration preparatory committee. “By promptly realizing the synergies from the integration, Nissan and Honda can aim to become a world-class mobility company with sales revenue exceeding 30 trillion yen and operating profit of more than 3 trillion yen,” they added. Nissan and Honda, with the result of the consideration, plan to establish, through a joint share transfer, a joint holding company that will be the parent company of both companies. The share transfer ratio for the share transfer will be determined by the time of concluding the final definitive agreement regarding the business integration.