Honda Motor and Nissan Motor are exploring a potential merger, according to people familiar with the matter, which would create a singular rival to Toyota Motor in Japan and better position the combined company to face competitive challenges around the world.
Honda is considering several options including a merger, capital tie-up or the establishment of a holding company, Executive Vice-President Shinji Aoyama said on Wednesday following reports overnight of talks between the carmakers. Aoyama declined to elaborate on when a potential decision will be made.
The companies could make an announcement on December 23, TBS reported. Nissan shares rose as much as 24 per cent in early Tokyo trading Wednesday, while Honda’s stock fell as much as 3.4 per cent.
The two have been holding preliminary talks about a combination, said the people, who asked not to be identified because discussions are private. One option being considered is the creation of a new holding company under which the combined businesses would operate, one of the people said. The transaction could also be expanded to include Mitsubishi Motors, which already has capital ties with Nissan, the person said. Mitsubishi shares jumped 17 per cent.
Discussions are early stage and may not lead to an agreement, the people said.
