Honda and Nissan are likely to unveil on Monday a pact to explore a merger by setting up a joint holding company, a person familiar with the matter told Reuters, with the aim of reaching a deal by June 2025.
The consolidation would create the world’s third-largest auto group by vehicle sales, following Toyota and Volkswagen, as legacy carmakers face growing challenges from Tesla and Chinese rivals.
Honda, Japan’s second-biggest automaker after Toyota, has a market capitalisation of more than $40 billion, while third-ranked Nissan is valued at about $10 billion.
The Japanese automakers will hold a joint press conference following board meetings on Monday that Nissan’s alliance partner Mitsubishi Motors is also expected to attend, according to the person and a second source. They spoke on condition of anonymity because the information was not public.
