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World 24/12/2024 Honda and Nissan in merger talks

Honda and Nissan in merger talks

Tashkent, Uzbekistan (UzDaily.com) — On 23 December 2024, Japanese automakers Honda and Nissan announced that they have started negotiations for a potential merger.

The goal of the merger is to create the world’s third-largest automaker by vehicle sales, behind only Toyota and Volkswagen, according to Reuters.

The merger is aimed at strengthening both companies’ positions amid increasing competition from Chinese manufacturers and the rapid growth of the electric vehicle market. The negotiations are expected to conclude by June 2025, and by August 2026, a holding company is expected to be established, with shares traded on the Tokyo Stock Exchange, reports The Japan News.

The merged company is anticipated to reach a combined sales volume of 30 trillion yen (approximately US$191 billion), with profits surpassing 3 trillion yen (US$19 billion), according to Forbes.

Mitsubishi Motors, in which Nissan is the main shareholder, could also participate in the negotiations. A decision on whether Mitsubishi Motors will join the talks is expected by the end of January 2025, reports Business Insider.

Former Nissan CEO Carlos Ghosn described the proposed merger as a "desperate move," pointing out the lack of synergy between the two companies, which operate in the same markets with similar products, according to Bloomberg.

If the negotiations are successful and the merger goes ahead, the combined company will become the third-largest automaker globally, allowing it to compete more effectively with leading global brands and adapt to the rapidly changing automotive industry.

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