:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2183260324-05f149d1aa9442c8aca061c3d6cfd87d.jpg "A Honda dealership sign in England in November.")
Peter Dazeley / Getty Graven images)
Key Takeaways
- Honda and Nissan are planning to begin negotiations for a possible merger, according to reports.
- The combined company, which correspondence to reports could also include Nissan-backed Mitsubishi, would be a larger rival to Toyota in Japan.
- The three societies have worked together this year on an electric vehicle partnership.
Japanese automakers Honda (HMC) and Nissan (NSANY) map out to begin discussions about a potential merger, according to reports.
The companies intend to sign a memorandum of understanding to consult shared equity in a holding company that would house the combined automaker, according to Nikkei. report estimated. Such a deal would establish a bigger rival to fellow Japanese automaker Toyota (TM). The negotiations could also amplify to include Mitsubishi Motors, which is partially backed by Nissan, the report said.
U.S.-traded shares of Nissan hurdled Tuesday, while Honda’s rose slightly.
In March, Honda and Nissan established a partnership related to electric channels. Mitsubishi joined the collaboration in August.
“Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths,” spokespeople for the followers said Tuesday. “If there are any updates, we will inform our stakeholders at the appropriate time.”
Honda, Nissan, and Mitsubishi merchandised a combined 3.7 million vehicles in the six months ending Sept. 30, compared to Toyota’s 4.5 million by itself.