Nissan and Honda Consider Merger to Form Largest Auto Industry Alliance

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Dec 17, 2024
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Nissan and Honda are reportedly in talks to merge by establishing a holding company, potentially integrating Mitsubishi Motors under this umbrella. Currently, Nissan holds a 24% stake in Mitsubishi Motors, making it the largest shareholder. If successful, this merger would be the largest in the global automotive industry since Fiat Chrysler and PSA Groupe formed Stellantis in 2021.

The merger aims to address the rapidly changing global automotive landscape. In August, Nissan and Honda entered a strategic partnership to share car components and software. The merger could help them better compete with Chinese automakers and U.S. electric vehicle leader Tesla.

On the stock market, Honda's U.S.-listed shares rose about 2%, while Nissan's over-the-counter shares surged over 11%.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.