Honda Motor Co. and Nissan Motor Co. are in the early stages of exploring a potential merger, Bloomberg reports, citing sources familiar with the matter. It is a move that could create a formidable rival to Toyota Motor Corp. in Japan and enhance the combined company’s ability to contend with growing global competition. Honda is evaluating a range of options, including a full merger, a capital tie-up, or the formation of a holding company, Executive Vice President Shinji Aoyama confirmed on Wednesday, following reports of talks between the two automakers.
Quoting people familiar with the matter, the Bloomberg report stated one potential scenario under consideration involves the creation of a new holding company to oversee the merged operations. There is also the possibility that Mitsubishi Motors Corp., already financially linked to Nissan, could be included in the deal, another person noted.
However, the talks remain preliminary, and no agreement is guaranteed, the sources cautioned in the report. If successful, the combined entity would also have greater resources to take on global competitors, particularly as automakers worldwide navigate a rapidly shifting market landscape.
“The content of the reports that Honda, Nissan and MMC are considering a business integration is not based on an announcement from our company. As announced in March and August of this year, Nissan, Honda, and MMC are considering various possibilities for future collaboration including the content of the report, but no decisions have been made. If there are any updates, we will inform all stakeholders at the appropriate time,” stated a spokesperson from Nissan.
Read More: Toyota to pull out as Olympic sponsor after Paris Games this year