Honda and Nissan may merge, creating the third-largest auto group, with positive impact on stocks.

From Investing.com: 2024-12-18 04:20:53

Honda and Nissan are in talks for a possible merger, creating a $54 billion company that would be the world’s third-largest auto group. Nissan’s financial troubles have added urgency for closer cooperation with Honda after announcing a $2.6 billion cost savings plan. Shares of Nissan rose nearly 24% in Tokyo trade. Talks could allow for more collaboration and technology sharing, potentially leading to a full merger. Renault, a major Nissan shareholder, saw shares jump 6.5%. The companies plan to hold a joint news conference in Tokyo on Monday to discuss future collaboration opportunities. Foxconn, seeking to expand its EV contract manufacturing business, approached Nissan for a controlling stake but was rejected. Automakers are under pressure from EV price wars, prompting mergers to cut costs and speed up development. Any merger would face U.S. scrutiny, with President-elect Donald Trump threatening tariffs on imported vehicles. Integrating different corporate cultures would be a challenge for Honda and Nissan if they proceed with a merger.



Read more at Investing.com: Honda, Nissan move to deepen ties, sources say, including possible merger By Reuters