New Delhi4 hours ago
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There may be a merger of Honda Motor Company and Nissan Motor Company. Both the car makers are considering coming together and competing in the global market with Toyota Motor Corporation.
Honda Executive Vice President Shinji Aoyama said that apart from the merger, both Honda and Nissan companies are also discussing several other options including capital tie-up and forming a holding company.
According to media reports, Mitsubishi Motors Corp may also come along in this deal, because it already has capital ties with Nissan.
Nissan shares rose 24%, Honda fell 3%
After the news of Honda-Nissan merger, Nissan shares rose by 23.70% on Japan’s Tokyo Stock Exchange (TYO). While Honda Meters shares fell by 3.04%.
After the merger, two major companies will be formed in Japan.
With this deal, two major companies will work in Japan’s auto industry – first: a holding company controlled by Honda, Nissan and Mitsubishi and second: a group consisting of Toyota Group companies.
Nissan has currently reduced its ties with France’s Renault SA. While Honda has retreated from General Motor Company. Before this deal was discussed between Honda and Nissan, earlier in the year, both the companies had agreed to work together on electric vehicle batteries and software.
According to a Nikkei report, both the car makers are planning to sign a Memorandum of Understanding or MoU to discuss shared equity stake in a new holding company.