InsideArbitrage Potential Deal Alert: Nissan and Honda (HMC) Hold Talks About a Merger of the Two Carmakers

POTENTIAL DEAL DETAILS

The Financial Times reported that Nissan and Honda (HMC) are in exploratory talks about merging the two carmakers to create a $52 billion Japanese behemoth.

The talks between Nissan and Honda are at an early stage, and there are concerns about a potential political backlash in Japan because a merger of two of the country’s most storied automobile brands could result in significant job cuts.

Reuters reported that Honda and Nissan are in talks to set up a holding company, a move that would allow them to share more resources amid competition upending the global industry. The talks are aimed at setting up an umbrella holding company that Nissan and Honda would then fall under.

Honda Motor Co., Ltd. Investor Relations

Nissan Motor Corp. Investor Relations

Update(s):

December 18, 2024: Nikkei reported that Honda Motor (HMC) and Nissan Motor will begin merger talks as early as Monday.

December 23, 2024: Reuters reported that Honda (HMC) and Nissan are expected to announce the start of business integration talks on Monday. The Japanese automakers are hosting board meetings on Monday about the negotiations. They will later hold a joint press conference that Nissan’s alliance partner Mitsubishi Motors is also expected to attend. Honda and Nissan aim to finalize the integration talks by June 2025, and, if successful, a joint holding company will list its shares while Honda and Nissan each will go private in August 2026.

December 23, 2024: Nissan Motor and Honda Motor (HMC) have signed a memorandum of understanding to start discussions and considerations toward a business integration between the two companies through the establishment of a joint holding company. Smaller Mitsubishi Motors, in which Nissan is a top shareholder, was also considering joining. Nissan and Honda aim to become a world-class mobility company with sales revenue exceeding 30 trillion yen and operating profit of more than 3 trillion yen. The companies aim to wrap up talks around June 2025 and then set up a holding company by August 2026.

Disclaimer: Our intent with this section of the website is to present potential deals that appear to be in the pipeline. These potential deals are ones where i) the company has indicated that it is "seeking strategic alternatives", ii) there has been an unsolicited bid for a company as mentioned in a press release by the company or iii) news about the deal has been published by a leading news organization like The Wall Street Journal, The New York Times, Bloomberg, Financial Times, The Washington Post, Reuters and The Associated Press. As best as possible we will try to avoid baseless rumors. There is a high probability that many of these potential deals may not materialize and if they do, the terms of the deal may be different from what was initially reported. Please do your own due diligence before buying or selling any securities mentioned on this website. We do not warrant the completeness or accuracy of the content or data provided.